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Harman [31]
3 years ago
15

How do banks make money off of the credit they issue

Business
1 answer:
LenaWriter [7]3 years ago
3 0

Answer:

The primary way that banks make money is interest from credit card accounts. When a cardholder fails to repay their entire balance in a given month, interest fees are charged to the account. ... When a retailer accepts a credit card payment, a percentage of the sale goes to the card's issuing ban

Explanation:

You might be interested in
Silvia Company acquires a 30% interest in Small Company. The fair value of Small's inventory exceeds its carrying value by $100,
beks73 [17]

Answer:

The revenue that the investment in the company would increase by $100,000.

Explanation:

Though the International Accounting Standard IAS 2 Inventories says that the inventory must be recorded at lower of:

  • Cost
  • Net Realizable Value (Fair Value less Cost to Sell)

This means though the Net realizable value increases but the cost remains the lower. This means their must not be any changes made to inventory account.

The profit earned from the increase in inventory value will be reflected in the income which will increase the net worth of the investment. So the increase in investment revenue would be by $100,000.

7 0
3 years ago
Marshall's & Co. purchased a corner lot in Eglon City five years ago at a cost of $640,000. The lot was recently appraised a
Gala2k [10]

Answer:

$1,780,000

Explanation:

The computation of the initial cash flow for this building project is shown below:

= Estimated building cost + appraised cost of the lot

= $1,110,000 + $670,000

= $1,780,000

Simply we added the estimated building cost and the appraised cost of the lot so that the initial cash flow amount can come.

All other information which is given is not relevant. Hence, ignored it

3 0
3 years ago
Egan is very skilled at budgeting his money, he is very patient, he understands how to track his own financial records, and he k
pentagon [3]

Answer:

Business Finance Management

Explanation:

Business Finance Management is the best fit for this because of requires a lot of skill in planning and budgeting money.

3 0
3 years ago
Read 2 more answers
Role of central government in regional development​
spin [16.1K]

Answer:

The central government is, essentially, the public body in charge of managing the nation's resources and controlling compliance with the laws. In other words, it applies its power within the entire national territory, but in turn delegating certain powers to state and local governments, which have a much stronger contact with the population of cities and states. Thus, within the regional development process in each nation, local and state governments are the main executors of development policies, but with the supervision and guidance of central governments.

7 0
3 years ago
Bette and Jamal are partners at a management consulting firm.
kodGreya [7K]

Answer:

Jamal

Explanation:

Given that

Number of required slides = 50 slides

Creating slides Per hour = 15 slides

Bill amount per hour = $750

So by considering the above information, Bette's opportunity cost of creating slides would be

= Bill amount per hour ÷ creating slides per hour

= $750 ÷ 15 per hour

= $50

For making 50 slides, the opportunity cost would be

= $50 × 50 slides

= $2,500

And, Jamal opportunity cost is 30% lower, so it would be  

= $50 - $50 × 30%

= $50 - $15

= $35

And, the billing rate is 25% higher, so it would be

= $750 + $750 × 25%

= $750 + $187.50

= $937.50

So in one hour, it would be

= $937.50 ÷ 35 slides

= 26 slides

Based on the creating slides, the Jamal gains a competitive advantage over Bette

4 0
3 years ago
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