Bankers Acceptances are generally drawn to raise capital for Financing working capital Financing imports Taking up new projects Repaying existing loans

Q: Borrowing of reserve fund by Bank means a. To meet the customers need for business loans b.…

A: A reserve fund is a special account with a financial institution such as a bank

Q: Which of the following is generally the least expensive source of funding? A) demand deposits B)…

A: Demand deposits refer to funds held in bank accounts that can be withdrawn by the account holder at…

Q: Importance of the “Teaser Rate” on ARMs—Residential Loans

A: Answer: Introduction: A teaser rate at the beginning of an adjustable mortgage rate (ARM) is the…

Q: Briefly explain the following investment channels with each one’s own returns and Risks. Bank…

A: Return and risk of investments are mostly proportional.

Q: An investment made in a fixed asset is similar to an investment made by a bank when it lends money.…

A: It is a long-term segment of a asset or property that an organization has and uses in the generation…

Q: Bank-based systems of financing non-financial companies are more effective than capital market-based…

A: Financial systems can help to keep domestic savings at home if they are well-governed. Financial…

Q: Financial market offers the borrowers funds they need to a. Increasing the productivity b.…

A:

Q: y banks to qualified borrowers * investment unsecured loans stand

A: Step 1   Customers can get unsecured loans from various lenders across the country. Several…

Q: Which one of the following choice is not one of the ways to transfer savings to those in needs of…

A: Person to person lending is not a way to tarnsfer savings form those who needs funds.

Q: The primary objective of issuing treasury bills is To manage short-term cash flow deficit To raise…

A: Treasury bills - Treasury Bills are short term debt instrument issued at low or no rate of interest.…

Q: What is the advantage of a variable-interest loan? Protects the borrower from rising interest rates…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Discuss in detail about the Loan securitization as a tool for managing risks by banks. Discuss about…

A: Securitization : It is a risk management tool used to reduce an risk that is particular to some…

Q: Describe a short-term financing option and discuss the advantages and disadvantages.  Is there a…

A: Short term financing: Any loan that is obtained for a short period of time is Short Term financing.…

Q: hich of the following is not a way in which banks lend short-term unsecured loans? a. Through a…

A: Banks give short term credits to the business to increase the business and grow business and provide…

Q: Banks improves the liquidity of the bank by

A: The correct answer is c. Generating additional income from investment

Q: Finance companies specialize in making loáns to__. banks corporations O small businesses O…

A: Finance Companies are those entities that provides financial and investment services. Such entities…

Q: What does a proper loan structure accomplish for the borrower and the lender?   A. Supports…

A: The term "loan structure" describes the range of options available to a lender when giving credit to…

Q: Building a good credit rating is integral to which of the following? Ability to have access to…

A: Meaning: Credit rating is the measurement of the past performance of a company related to loans and…

Q: Discuss the implications of financing through debt as they compare to financing through equity. What…

A: When a company raises capital by selling debt instruments to investors, this is referred to as debt…

Q: Can fund users (borrowers) such as corporations, raise funds through new issues of financial…

A: New issues, whether stocks or bonds, are a way for a firm to raise funds. An initial public offering…

Q: Clearly explain at least two similarities and at least two differences of financial institutions…

A: Agents, brokers, institutions, and intermediaries purchase and sell assets in financial markets.…

Q: Given a financial institution that make money in three ways: interest income, interest income, and…

A: Banks and Financial institutions make most of their money from loaning and re-loaning money. Low…

Q: part-a: What is the difference between direct finance and indirect finance?  part-b: What are the…

A: Since you have posted a question with multiple subparts, we will solve first three sub parts for…

Q: Firms borrows additional funds for two reasons

A: There are two main sources of funds are available for a company to choose one is equity and other…

Q: Create a plan of investment on a bank and solve its interest with respect to the rate offered and…

A: Simple interest is computed on the loan's initial main amount, but compound interest is calculated…

Q: What is a common method used by banks to account for the interest income on loans that

A: The most common method used by banks to account for the interest income on loans that considers…

Q: Asset-based lending is typically used to finance a. accounts receivable b. real estate. c.…

A: Asset-based lending is typically used to finance  c. construction and development projects.     A…

Q: T F Long-term financing is generally used to opennew businesses.

A: Long-term financing refers to procuring debt for longer durations. It is generally undertaken where…

Q: What are pros and cons of raising money with debt? What is an alternative and why might some…

A: When a corporation generates funds by issuing debt instruments, this is known as debt financing.…

Q: Using loanable funds model, explain how tax cuts for businesses will impact the interest rate and…

A: If the government has announced tax cut for the business sector and it would be leading to increase…

Q: Direct finance occurs when A. savers go directly to borrowers for funds. B. borrowers deposit funds…

A: Financing is the borrowing of money by the needy. if someone needs to money for some purpose and…

Q: When assessing the creditworthiness of new entrepreneurs, lending institutions review the “Five…

A: The five C's of credit are as follows: 1) Capital 2) Capacity 3) Collateral 4) Character  5)…

Q: What is Circulating Working Capital?  To     what extent are current liabilities a     source of…

A: Circulating Working Capital-             Circulating capital is cash being employed for core…

Q: Differentiate between leasing and long term bank loan as source of finance

A: Banks play an important role in financing; there are various types of bank financing one of them is…

Q: Inland development projects, why do lenders insist on loan repayment rates in excess of the sales…

A: Banks/ lenders will hesitate to give loans to people who are in a desperate situation (like…

Q: In recent years, ‘direct lenders’ and ‘shadow banks’ have increasingly provided funding for…

A: The lending agencies are the financial institutions that provide funds to the public, business…

Q: Briefly explain the difference between compounding and discounting in terms of value of money. The…

A: When interest is earned and reinvested, the technique of computing total interest on the principal…

Q: This type of financing involves a syndicate of financial institutions to provide debt financing.…

A: SEO or Search Engine Optimization is defined as the art as well as science of getting the sites or…

Q: i need an essay for bank sector in expenditure сycle

A: Expenditure cycle includes the stages performed when goods and services are acquired. The main…