Is Michael's computation correct? Is the bank's computation fair? Why?

Q: The future value is the same concept as the way money grows in a bank ·count True or falco2

A: Time, value of money refers to a concept used for evaluating the viability of the project which is…

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: How does World Bank work?

A: World Bank: The World Bank is an international organization that delivers financing, guidance, and…

Q: What would happen to the standard of living if people lost faith in the safety of financial…

A: Financial institution is the institution which involve the financial activities such as investment,…

Q: How can we find the present worth of any uneven stream of payments?

A: The question is based on the concept of present value of uneven cash flow

Q: What is meant by a banker’s acceptance?

A: Money market instruments refers to financial instruments whose maturity period lies between 30 to…

Q: What factors led to the success of Grameen Bank?

A: The bank is a financial organization that accepts the deposits from the public in order to provide…

Q: Islamic banking

A: Islamic banking is a system of banking in accordance with the rules of the Shariat. There is no…

Q: Is it in the best interests of the company to borrow money?

A: Introduction: Obtaining finances in debt is significantly more straightforward for companies than…

Q: what is ADVANTAGES AND DISADVANTAGES OF THIS MORATORIUM  in banking to  BANKS . Give an example

A: MORATORIUM- is an option available to borrower to defer the EMI payment. During the moratorium…

Q: Do you think that the so-called equity theories of accounting are really theories in the scientific…

A: Yes. equity theories of accounting are really theories in the scientific sense.  the real owners are…

Q: 5. explain what the benefits of escrow for both the borrower and the lender may be? Do disadvantages…

A: When you make big investment or purchase property in the market than there is need of third party…

Q: what is ADVANTAGES AND DISADVANTAGES OF THIS MORATORIUM FOR THE BANKS AND BORROWERS? provide…

A: A moratorium is a temporary cessation of activity until future circumstances necessitate its lifting…

Q: How do lenders’ and borrowers’ requirements differ? How can financial intermediaries bridge the gap…

A: Lenders' requirements: The minimization of risk This includes the minimization of the risk of…

Q: What is a Bankers’ Acceptance?

A: short term market securities: these are the securities which last for one year or less.

Q: What is the worst that can happen if you invest your money?

A: Investors have different options to make investments, and the motive behind investments is to…

Q: What is the major advantage of using a fee-only financialplanner?

A: There are different types of financial planners to help investors plan their finances. Majorly,…

Q: Why is banking a necessity in our day-to-day life?

A: Banking involves accepting deposits from the surplus units and lending the money to those in need…

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: What is securitization? What are its advantages to borrowers?What are its advantages to lenders?

A: Securitization is a financial process that takes an asset of some kind and turns it into a security,…

Q: financial gain

A: ANSWER- ECONOMIST  The Economist online offers authoritative insight and opinion on international…

Q: Define the term truth-in-lending laws? What are its requirements?

A: Answer: The 1968 Truth in Lending Act (TILA) is a federal statute of US aimed at encouraging…

Q: What are the different types of SSS loans?

A: A SSS loan is given in the Philipines, which is majorly divided into three categories.

Q: What are the advantages to borrowers and risks to lenders for each?

A: Borrowers are the people who borrows the money for any specific purpose. Borrowers pay some amount…

Q: Why are the banks reluctant to lend, and what should be done to increase bank lending?

A: Banks generally borrow and lend cash in the interbank loaning market so as to oversee the liquidity…

Q: As a student, how does comercial banks important?

A: A commercial bank seems to be a financial organization that accepts deposits from the common public…

Q: -how can they say that a money has a store of value? -how can they say that currency doesn't have a…

A: In finance any commodity or asset that maintains its value (and hence does not depreciate) is said…

Q: Why is it preferable to receive cash sooner rather than later?

A: Definition:   Time value of money: The time value is measured with the difference between an…

Q: hy did Washington Mutual Bank failed.

A: Washington Mutual (WaMu) was a US savings and loan association that collapsed during the global…

Q: What are the advantages and disadvantages of direct lending for the bank? How are banks reducing the…

A: Direct lending refers to a type of lending that is provided directly by the lender, such as a bank,…

Q: What are the advantages and disadvantages of direct lending for the consumer? What can banks do to…

A: Direct lending refers to a type of lending that is provided directly by the lender, such as a bank,…

Q: What are the factors that you need to consider in applying for a loan? Why is it important to…

A: When applying for a loan one need to consider several factors at play. Some of them are quantitative…

Q: Why would a lender be willing to make a participation loan?

A: Introduction: Participation loan is a form of loan in which lender is participating in net operating…

Q: How important is the ability to borrow money from an individual and what is the primary risk of…

A: Borrowing money is the act of obtaining money from the lender in order to fulfill a financial goal…

Q: What federal law protects cosigners on a loan agreement? What is the bank required to do? What other…

A: A loan agreement is a legally binding contract between a lender and a borrower that outlines the…

Q: hich explanation BEST describes John Maynard Keynes' "The Para Individuals should reduce spending to…

A: Paradox of thrift explain about the nature of humans during the period of economic recession and how…

Regulation of Commercial Banks

The main function of any commercial bank is accepting deposits and lending money to borrowers. Apart from these two activities, commercial banks provide a host of other services to their customers, like discounting bills of exchange, acting as a custodian of a customer's will, and so on. In the absence of a proper regulatory framework or proper regulations in place, the commercial banks would have ended up charging exorbitant or varied rates of interest or service charges on the funds loaned by them or the services performed by them.