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kolbaska11 [484]
3 years ago
13

Please provide at least 3 similarities and 3 differences between insurance companies and depository institutions both in terms o

f their function as well as the make-up of their balance sheet.
Business
1 answer:
Galina-37 [17]3 years ago
3 0

Answer:

Explanation:

I will be starting with the similarities first. 3 of the similarities both of them share are

1) They both have a financial leverage that is quite high

2) they both can be subjected to national oversight as regards to their balance sheet quality.

3) they both are institutions that accepts funds and also gives out funds to finance commercial firms

Moving on to the differences, differences that exists between both includes

1) Insurance companies can are invest in stock markets but depository institutions do not have that leverage.

2) Insurance companies do not have fixed composition of liabilities, while depository institutions have.

3)

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When an employee does the work necessary to remove physical dirt what food residue
melomori [17]
They are reffered to as an janitor / cleaning service 
8 0
3 years ago
If a monopolistically competitive firm raises its price, it a. loses all of its customers (sales drop to zero) as your answer lo
borishaifa [10]

Answer:

c. loses some, but not all, of its customers as your answer loses some, but not all, of its customers

Explanation:

In a monopolistically competitive product is a product that has competition in the market, but that are not quite the same product, meaning they can´t be exactly replaced by a cheaper or different brand, when a company like that rises its prices, it eventually ends up loosing some clients, but not all, because of the loyal clients and those that can´t or won´t change brands, a good example of a monopolistically competitive firm, would be Apple, which has a loyal base of costumers that eventhough prices of apple products have been rising are still loyal, they are loosing some customers to other brands but not all of them.

8 0
3 years ago
You purchased 300 shares of common stock on margin for $60 per share. The initial margin is 60% and the stock pays no dividend.
MrMuchimi

Answer:

- 41.67%

Explanation:

For computing the rate of return first we have to compute the initial investment which is shown below:

= Number of shares × per share ×  initial margin percentage

= 300 shares × $60 per share × 60%

= $10,800

Now Loss on sale of common stock is

= (Selling price - purchase price) × number of shares  purchased

= ($45 - $60 ) × 300  shares

= - $4,500

So the rate of return will be:

= Loss ÷ Initial Investment

= - $4,500 ÷  $10,800

= - 41.67%

7 0
3 years ago
What will most likely cause a lender to deny credit?
8090 [49]

Answer:

A historic credit score of 300

Explanation:

A credit score is a numeric record that expresses the reliability of a borrower to repay loans. The credit score or credit rating is determined by, among other things, credit history, income level, and the individual's income to debt ratio.

Credit scores range between 300 and 850. 300 is the lowest and the poorest score. A score of 300 indicates that the borrower has a bad history of debt repayment. They are always late on repayments,  miss on installments, or have defaulted on loans. Lenders consider such persons as high-risk borrowers and are likely to deny them credit facilities.

7 0
3 years ago
Match each of the following terms with their definition - Before-tax cost of debt - Cost of preferred stock - Cost of Common Sto
fomenos

Answer:

Before-tax cost of debt ⇒ A. The interest rate the firm must pay on new long-term borrowing.

This refers to the interest rate that a firm will pay on long term borrowing as compensation to the lenders for lending the company some funds.

Cost of preferred stock ⇒ C. rate of return investors require based on the preferred stock dividend.

The cost of the preferred stock is the rate of the preferred dividend that investors require they are paid every year if dividends can be paid and sometimes even when it cannot.

Cost of Common Stock ⇒ B. the rate of return on retained earnings, and adjusted for flotation costs .

Commons stock costs is the required return on the retained earnings of a company.

WACC ⇒  D. the average cost of raising new financing.

Weighted Average Cost of Capital (WACC) represents the total cost of raising capital for the company as it incorporates the costs of debt, preferred stock and common stock.

3 0
3 years ago
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