Why can’t bank lend without a written loan policy? Explain in detail.

Q: Why is it essential to know different kinds of loans?

A: A loan helps in determining the money supply and helps new businesses in the lending process. The…

Q: What are the factors that may influence the use of money vs credit cards?

A: There are several factors that influence someone's decision to buy goods or services through money…

Q: Which are the major problems facing a lender when reviewing a loan request made by a borrower?

A: Introduction: A loan agreement is nothing but an agreement between a lender and the borrower which…

Q: What interest rate is the bank required by law to report to potential borrowers? (I

A: Effective annual interest rate is also called annual rate of return . It is the real return…

Q: What is the status of a lender on collateral if they fail to perfect their security interest? What…

A: A security interest in an asset that cannot be claimed by any other party is called a perfected…

Q: Which of the following is true of an unsecured loan? A. They are exclusively for cars, houses, and…

A: Loan can be defined as money that somebody lends other person in exchange of some interest that is…

Q: Which of the following is a reason that banks may favor fee compensation over balance compensation?…

A: In order to increase their deposits and use them for loan, banks usually prefer fee compensation…

Q: What is adverse selection?  Why does it predict that lenders will prefer to arrange loans through a…

A: The loan is the funds that a borrower takes from the lender at a certain rate of interest for a…

Q: How does commercial paper differ from a bank loan? Why is the interest rate often less for…

A: Commercial PaperCommercial paper is promissory notes that represent loans issued by the companies.…

Q: Bank loans often are arranged under existing lines of credit. What is a line of credit? How does a…

A: LiabilitiesLiabilities are referred to as the obligations of the business towards the creditors for…

Q: If Steve can't decide what bank to take a loan from, what banking service would make a bank a better…

A: 0% Financing represents the discounted finance or loan that is provided to the customers at a…

Q: Bank loans often are arranged under existing lines of credit. What is a line of credit? How does a…

A:

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: Credit card debt and commercial loans are easily among the most significant and familiar financial…

A: Credit card debt is a type of bank overdraft wherein the borrower needs to pay an interest amount…

Q: What are the primary tools, and how are they used by lenders when determining whether they will lend…

A: Introduction : The given question relates to the concept of creditworthiness. The creditworthiness…

Q: Explain why a loan officer always looks at a credit report before making a loan. What should you do…

A: The credit report is a way of assessing the credit history of the person seeking loan. By looking at…

Q: why do banks consider interest on loans to be important?

A: Bank is defined as the financial institution, which accepts the deposits from public as well as…

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: As long as you have a strong reason for taking a loan, there is no need to understand the terms of…

A: Understanding the terms in a loan agreement is vital. Loan agreements are an critical a part of…

Q: Why should you and should not sign a personal guarantee for a business loan?

A: The personal guarantee for a business loan refers to the assurance by the company or a business…

Q: Why is interest paid on amounts borrowed from banks and other lenders considered to be anoperating…

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: What bank regulation is designed to reduce adverse selection problems for deposit insurance? Will it…

A: Banks are the financial institutions that are involved in providing financial services to their…

Q: Why is it necessary for the bank to have the right to assign a mortgage to a third party (for…

A: Assignment of mortgage to a third party :  It is referred to as an agreement in loan obligations are…

Q: How does the cost of costly trade credit generally compare withthe cost of short-term bank loans?

A: Costly trade credit imply companies that make payments after the discount period as they forego the…

Q: If a consumer with a relatively low credit score applied for a loan from your bank, what other…

A: WHAT IS CREDIT CRITERIA- Credit criteria area unit the factors employed by lenders to work out…

Q: Why will bank never opt for the rejection of payment of LC to exporters bank?

A: A Letter of Credit or Credit Letter refers to a assurance letter given by the bank to its buyer that…

Q: nt stud

A: Introduction : In simple words, student loans refers to the amount borrowed by individuals to…

Q: How does peer to peer lending is different from traditional banking lending for Credit Mutuel Group?

A: Peer-to-peer lending is a type of crowd-funding that allows those who wish to invest to lend money…

Q: Which of the following decreases the likelihood of bank failures by keeping banks from making risky…

A: Option d is correct.

Q: What does it mean when a lender accelerates on a note? What is meant by forbearance?

A: Promissory note is written by the borrower and sent to the lender. In promissory note, borrower…

Q: 2. Substantial amount of credit losses is due to poor loan monitoring. In view of this, suggest how…

A: Loan is when the funds are given to some other party in an exchange regarding the repayment of the…

Q: Which type of information asymmetry explains why bad credit risks are more likely to seek bank…

A: Adverse selection, as a rule, alludes to a circumstance where dealers have data that buyers do not…

Q: what are two types of credit

A: "We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: When do you considered a loan, receivables are impaired?

A: Impairment refers to diminution in realizable value of the asset. It may be due to various factors…

Q: What are the major flaws with NPV? What are the major flaws with IRR? If you are going to a bank and…

A: Major flaws with NPV:Requires an assumption of discount rate which is not directly observable in the…

Q: If a bill of exchange is discounted and on the date of maturity such bill of exchange was dishonored…

A: Bill of Exchange According to Negotiable instrument Act there are three types of Negotiable…

Q: Which of the following would result in a soft credit inquiry? o mortgage loan application O…

A: Soft credit inquiry means inquiry of your own credit scores. This inquiry will not affect the credit…

Q: What kinds  of fees and penalties can be levied on savings accounts?

A: Bank: It is a financial institution that accept deposits from and provide loan to public. This…

Q: When loans are obtained from the bank or lending institutions, the accounts receivable may be…

A: Loan means the amount taken from another person to be repaid back with interest.

Q: What concerns are there regarding the Paycheck Protecting Program and the Main Street Lending…

A: Paycheck Protecting Program: It is the program launched to protect the salary of employees being…

Q: What is the process of Borrowing with Credit Cards?

A: The credit card is a vital instrument to upsurge the buying power. The credit card facility aids to…

Q: Which of the following is not likely cause of Default? Select one: a.Lack of compliance with loan…

A: The term “Default” in terms of a loan refers to the failure of repayment of the loan by the borrower…