Why does a bank make loans?
Question:
Why does a bank make loans?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 0% (1 review)
Banks make loans as a fundamental part of their business model and there are several reasons for this Interest Income One of the primary reasons banks ...View the full answer
Answered By
Joseph Mwaura
I have been teaching college students in various subjects for 9 years now. Besides, I have been tutoring online with several tutoring companies from 2010 to date. The 9 years of experience as a tutor has enabled me to develop multiple tutoring skills and see thousands of students excel in their education and in life after school which gives me much pleasure. I have assisted students in essay writing and in doing academic research and this has helped me be well versed with the various writing styles such as APA, MLA, Chicago/ Turabian, Harvard. I am always ready to handle work at any hour and in any way as students specify. In my tutoring journey, excellence has always been my guiding standard.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Economics An Introduction To Traditional And Progressive Views
ISBN: 9780765616685
7th Edition
Authors: Howard J. Sherman, E. K. Hunt, Reynold F. Nesiba, Phillip A. O'Hara, Barbara A. Wiens-Tuers
Question Posted:
Students also viewed these Business questions
-
1. The Ontario Payday Loan Act limits the amount an individual may be charged to $15 per $100 borrowed for a two-week period. Calculate the cost of the loan and the annual percentage rate of charge...
-
Nino Moscardi, president of Greater Providence Deposit & Trust (GPD&T), received an anonymous note in his mail stating that a bank employee was making bogus loans. Moscardi asked the banks internal...
-
The story of ZZZZ Best is one of greed and audaciousness. It is the story of a 15-year-old boy from Reseda, California, who was driven to be successful, regardless of the costs. His name is Barry...
-
A study of 876 senior citizens shows that participants who exercise regularly exhibit less of a decline in cognitive ability than those who barely exercise at all. From this study, a researcher...
-
In East Asia, many of online games rely on a business model that is different from the way the video-games industry works in the West. Rather than selling games as shrinkwrapped retail products which...
-
How does the accounting treatment for the cost of abnormal processing losses differ from the treatment for normal losses?
-
When a cash receipt on account transaction involves a discount, the discount amount is entered into the appropriate departments sales discounts account. (True/False)
-
Ms. Batt owns all the common shares of Batter up Ltd., a Canadian-controlled private corporation, which started operations in 1987. Batter up Ltd. has been quite profitable since the early 1990s. As...
-
Question Content Area Cost of Production and Journal Entries AccuBlade Castings Inc. casts blades for turbine engines. Within the Casting Department, alloy is first melted in a crucible, then poured...
-
Many computer manufacturers now include tools or simulators that allow you to measure the instruction set usage of a user program. Among the methods in use are machine simulation, hardware-supported...
-
What was the role of the earliest bankers? Why? How did bankers eventually begin to create money.
-
What are the four stages of money? What drove the changes from one stage to the next? Explain.
-
Find the rate of conduction heat transfer through a 1.5-cm-thick hardwood board, k = 0.09 Btu/ h-ft-R, with a temperature difference between the two sides of 40 F.
-
The map at right shows elevation contours as colors - dark green = high elevations and red = low elevation. The colorscale at far right shows more elevation detail. What is the elevation at the...
-
Do you agree with these statement? 1-In the time after the "Lost Decades," Japan underwent dynamic changes in response to internal and external negative events including international issues with the...
-
Take a look at the code below and briefly explain why this will not work.... public static void main(String[] args) } List MyList = new ArrayList(); MyList.add("Hello"); double average =...
-
The author of the article "Why the Beach Is a Bummer," Roxanne Gay, states her main claim that there's no perfect day at the beach. It has disillusioned many Americans that it's a glamorous place...
-
According to your readings, and from what you have learned in Module 5, how could war stimulate the economy? Explain in detail, making sure to mention the impact government purchases have on Gross...
-
The table shows 2008 GSS data on race and political party identification. a. The chi-squared test of independence has X2 = 177.312. Carry out the five steps of the test, and interpret the result in...
-
Identify the Critical Infrastructure Physical Protection System Plan.
-
(EPS with Convertible Bonds) On June 1, 2009, Bluhm Company and Amanar Company merged to form Davenport Inc. A total of 800,000 shares were issued to complete the merger. The new corporation reports...
-
(EPS with Convertible Bonds and Preferred Stock) The Ottey Corporation issued 10-year, $4,000,000 par, 7% callable convertible subordinated debentures on January 2, 2010. The bonds have a par value...
-
(EPS with Convertible Bonds and Preferred Stock) On January 1, 2010, Lindsey Company issued 10-year, $3,000,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Lindsey...
-
Angela is entitled to a fixed annual payment of $15,000 from ABC Partnership without regard to the income of the partnership. Her share of the partnership income is 10%. After deducting the...
-
Rosie has $24,000 short-term capital loss, $10,500 28% gain and $9,000 0%/15%/20% gain. Which of the following statements is correct? a. Rosie has a $19,500 net capital gain b. Rosie has a $7,500...
-
Wyatt Company was formed on January 1, Year 1, when it acquired $50,000 cash from issuing common stock. Which of the following shows the impact of this transaction on Wyatt's accounting equation?...
Study smarter with the SolutionInn App