Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 31, 2024

When a bank grant a loan to a customer, why does the bank have to make provisions? Please mention and explain two types of provisions.

When a bank grant a loan to a customer, why does the bank have to make provisions? Please mention and explain two types of provisions. Why does the bank still have to increase level of capital required when it grants a loan to a customer although the bank have made provisions for this loan already

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

19. Prove that if X and Y are jointly continuous, then E[X] = E[X|Y = y] fY (y) dy

Answered: 1 week ago

Question

★★★★★

Variance analysis, working backward. The Jinwa Corporation sells two brands of wine glasses: Plain and Chic. Jinwa provides the following information for sales in the month of June 2011:...

Answered: 1 week ago

Question

★★★★★

The Wright Company has a standard costing system. The following data are available for September: The actual price per pound of direct materials purchased in September is: $6.87 $7.00 $7.10 $7.13...

Answered: 1 week ago

Question

★★★★★

contain an even number of a's contain no substring aa contain no substring bb at least one a and no occurrence of aahave odd length Question 2 contain aa and ab start with aa The regular expression...

Answered: 1 week ago

Question

★★★★★

Tariq manages a database for ABC Corp. As a database manager, he is responsible for collecting all compliance data and entering the information into an excel spreadsheet. He is a salaried employee,...

Answered: 1 week ago

Question

★★★★★

Suppose an ATM of a community bank dispenses $100,000 per week. Restocking the ATM costs $500. The bank has amazing opportunities for investment, so the cost of holding $1 for a year in an ATM is $1....

Answered: 1 week ago

Question

★★★★★

A group of faculty was interested in predicting the average incoming SAT scores of students, based on their high school GPA. What is the correct type of test that should be used to analyze this data?...

Answered: 1 week ago

Question

★★★★★

Kyra, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2023, the business pays $60,000 of W-2 wages, has $150,000 of...

Answered: 1 week ago

Question

★★★★★

Autumn wants to start a business. She has two goals. First, she doesn't have much money but she's ready to get business up and running with the least possible hassle and expense. Second, she wants to...

Answered: 1 week ago

Previous Question Next Question