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harkovskaia [24]
2 years ago
11

How do banks make profits?

Business
2 answers:
Fiesta28 [93]2 years ago
3 0
They make profits by people going into their banks
Gwar [14]2 years ago
3 0

Answer:

Banks make money from service charges and fees. Banks also earn money from interest they earn by lending out money to other clients.

Explanation:

You might be interested in
M1 and M2 are two definitions of the money supply.
Alex787 [66]

Answer: Please refer to Explanation

Explanation:

M1 is the narrowest definition of money supply. It refers to the most liquid or instruments and includes actual currency as well as money in checking accounts.

M2 is the next type of of money. It includes EVERYTHING in M1 and then also includes savings deposits, time deposits, and money market funds.

Now,

Classifying the above will go as,

Gold - Neither M1 or M2

Traveler's check - M1 and M2

Balance in savings accounts - M2 only

Money market account balance - M2 only

Credit cards - Neither M1 or M2

Common stock - Neither M1 or M2

Certificates of deposit - M2 only

Currency - M1 and M2

Balance in Checking accounts - M1 and M2

It is worthy of note that there is no M1 only. This is because as stated in the definition, all M1s are in M2.

5 0
3 years ago
In training delivery, which of the following mediums most clearly allows individuals to work through the training materials at t
soldi70 [24.7K]

Answer:

c. E-learning online training courses

Explanation:

Through this method, most individuals can train themselves in any discipline at their own pace without hurry. The materials are readily available and can be read at a convenient time appropriate

8 0
3 years ago
Read 2 more answers
Another company plans to issue 20-year bonds with a face value of $1,000 and an annual coupon rate of 10%. The market price of s
Lorico [155]

The after-tax cost of debt is 6.28%.  Subtract a company's effective tax rate from one and multiply the difference by its cost of debt to calculate its after-tax cost of debt.

<h3>What is After-tax cost?</h3>
  • After-tax cost denotes the actual costs less an amount equal to the combined federal and state income tax savings relating to the deductibility of said costs for federal and state tax purposes in the year in which such costs are incurred.
  • WACC represents a company's average after-tax cost of capital from all sources, including common stock, preferred stock, bonds, and other forms of debt.
  • WACC is the average interest rate that a company anticipates paying to finance its assets. The pre-tax cost of debt must be tax-affected because interest is tax-deductible, effectively creating a "tax shield" that is, interest expense reduces a company's taxable income (earnings before taxes, or EBT).

Therefore,

The after-tax cost of debt is 6.28%.

FV = -$1,000

PMT = -$100

N = 20 years

PV = $1,098 before including flotation costs; $1,098×(1-.05) = $1,043.10 after including flotation costs.

Compute I/Y = 9.511%

After-tax cost of debt = 9.511%×(1-.34) = 6.28%

To learn more about After-tax cost, refer to:

brainly.com/question/25790997

#SPJ4

6 0
1 year ago
Suppose you have just landed a job near the center of a city and you now need to decide where to live. If you live close to the
Tomtit [17]

Answer:

Since there are only a limited number of apartments near the city​ center, these apartments will be allocated based on  <u>BOTH THE COSTS AND BENEFITS</u>. This process is known as <u>OPTIMIZATION.</u>

Explanation:

Optimization refers to calculating the change in net benefits between alternative choices, and choosing the alternative that provides the most benefits at the lowest costs.

For example, the cost of an apartment downtown will be much higher if measured as $ per square foot, but the advantage of saving 90 minutes of travel time a day might justify the extra cost.

If you are married and have children, then the extra cost of living downtown might be too high due to the amount of space needed for the whole family, therefore, it might be cheaper to spend 90 minutes a day travelling than paying an extremely high rent.

6 0
2 years ago
Ron is interested at working at Gas’N’Go, but whenever he looks on their company Web site he doesn’t see any openings listed. Wh
Brrunno [24]

Answer: c). Ron should send a prospecting letter to see if there are any unadvertised openings

Explanation: Since Ron is interested at working at Gas’N’Go, but is unable to find an opening on the company Web site he should try and send a prospecting letter to see if there are any unadvertised openings. It might happen at times that companies do not post online for certain positions. but when Ron send a letter he might have a chance to get a call from them.

4 0
3 years ago
Read 2 more answers
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