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- Which statement is incorrect? a. Information and transaction costs related to financial market transactions would be higher if there is no participation of financial intermediaries. b. The common trait of savings banks, commercial banks, credit unions and savings and loan associations is that all of them accept deposits from SSUs and provide credit to DSUs through loans and purchases of securities. c. Finance companies act as a factor by purchasing a firm's receivables at a discount and subsequently processing and collecting the balances of these accounts. d. A lending company operating in the Philippines cannot charge more than 12% annual interest on the loans it grants to borrowers. e. none of the aboveWhich of the following roles is considered a main objective of credit rating agencies? a. Granting loans to borrowers b. Lessen information asymmetry. c. Underwriting securities d. Receiving investments from capitalists. e. Taking deposits from saversOverall, do you believe that extending credit to customers is a good business practice? Why or why not?
- Loan structuring is the process of designing a loan to satisfy the financing demands of a business borrower. At the same time, it tries to protect the lender against losses caused by the borrower's refusal to repay the debt, as well as the interest and fees associated with it. Determine the process of credit facilities structuring that takes place in the bank.Why do you think businesses extend credit to customers thereby creating accounts receivable?1. Which of the following is the primary reason why a company sells it receivables to another entity? a) to improve the quality of its credit granting process b) to comply with customer agreements c) to limit its legal ability d) to accelerate access to amount collected
- (Urgent) Credit Analysis & Lending Management Doubtful debts are those debts which is unlikely to be able to collect, bank hiring a collection agency use to recover funds or collecting delinquent debts. Banking primary focus is running business, but a collection agency's primary focus is to collect debts. Therefore, examine the advantages and disadvantages in appointing a third party in collecting bad debt in Malaysia.Your company provides credit to customers. Someof these customers default on their loans, with verynegative implications for you. Describe how you coulduse discriminant analysis to learn what distinguishesthe customers who default on their loans from thosewho pay back their loans. How might you use such amodel?Credit Analysis & Lending Management Question: Doubtful debts are those debts which is unlikely to be able to collect, bank hiring a collection agency use to recover funds or collecting delinquent debts. Banking primary focus is running business, but a collection agency's primary focus is to collect debts. Therefore, examine the advantages and disadvantages in appointing a third party in collecting bad debt in Malaysia.
- Agree or disagree with the following statements then discuss: ” Liquidity services are services that make it easier for customers to conduct financial transactions” “Most people's involvement with the financial system is through financial intermediaries rather than financial markets”. “Every financial market allows loans to be made”.A bank is considering implementing a business rules management system for assessing the riskand creditworthiness of individuals as part of the loan approval process.• List and explain 3 benefits of such a system?• List 2 potential legal or ethical issues that might arise in the use of such a systemWhich of the following best represents a positive product of a lower number of days sales in receivables ratio? A. collection of receivables is quick, and cash can be used for other business expenditures B. collection of receivables is slow, keeping cash secured to receivables C. credit extension is lenient D. the lender only lends to the top 10% of potential creditors