The main difference between sales finance and consumer finance is: The length of time until the loan has to be repaid The size of the purchase involved One deals with equipment leasing and the other does not The type of borrower

The main difference between sales finance and consumer finance is: The length of time until the loan has to be repaid The size of the purchase involved One deals with equipment leasing and the other does not The type of borrower

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The main difference between sales finance and consumer finance is:
The length of time until the loan has to be repaid
The size of the purchase involved
One deals with equipment leasing and the other does not
The type of borrower

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Which of the following statements is true of the Loans to Deposit Ratio? a. A high ratio means that there is a lesser reliance on money market than core deposits for the funding of its loans. While the lower the ratio indicates that the institution is not able to rely on core deposits to fund loans. b. The Loans to Deposit ratio is calculated by multiplying total loans by total deposits. c. A high ratio means that there is a heavier reliance on the money market than core deposits for the funding of its loans. While the lower the ratio indicates that the institution is able to rely on core deposits to fund loans. d. A low ratio means that there is a heavier reliance on the money market than core deposits for the funding of its loans. While the higher the ratio indicates that the institution is able to rely on core deposits to fund loans.
A bank that grants loans to firms in a many different lines of business: will increase its information cost and decrease its credit risk will increase both its information cost and its credit risk will decrease its information cost and decerase its credit risk will decrease its information costs and increase its credit risk
What are the benefits to the back for amortizing a loan
Please Make this notes clearer and perfectly written. Here is my notes: At times companies engage in repurchase agreements; are from the perspective of the borrowers. they borrow money to finance themselves short term and the value of the money they borrow whatever that value is they agreed to pay the lenders when they return the money with a higher value even if they borrow low and pay high and that difference is their cost of funding repurchase agreements repurchase agreements are always collateralized with high quality paper government securities it can also be a commodity like precious metals gold or silver repos besides the collateralization. The federal funds that's an important take away that one member of the treasury reserve system lends to another short term loans that one member of the treasury reserve system lends to another The banks have surplus reserves with our central bank some are in deficit the who the ones who are in surplus lend to the ones who are in deficit…
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How does a short term loan works? Do not copy and paste
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