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 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: Do you agree that banks have high operating risks? Why?

A: The notion of operational risk in the banking system does not seem to be new. Nevertheless, it was…

Q: What is shadow banking? What are the backstops in shadow banking and traditional banking? Please…

A: Shadow banking is unregulated where the lenders, creditors, brokers, and other financial…

Q: what are the Benefits and Costs of Delinquency In the field of lending

A: Whenever a customer does not meet their obligation, a cost aries as the payment on the credit sales…

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 are the factors that make a person choose a bank? What are people looking for in a banking…

A: Bank is referred as the financial institution, which accepts the monetary deposits from the people…

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: 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: Islamic banking

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

Q: Role of Central Banks and Moral Hazards The potential answers for moral hazard. How might moral…

A: The central bank is the institution which ensures that the growth and good health of the financial…

Q: Describe the Federal Reserve Banking System. Which is the most vital? Which is less important? Why?

A: This question explains about the Federal Reserve Banking System is a system of banks run by the…

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: Please answer in detail     How can someone manipulate a balance sheet to make it in his favor?

A: Manipulation of financial statements and other sorts of accounting fraud are still issues for…

Q: WHAT DOES EXIM BANK JAMAICA DO?

A: Banks are very important for growth and development of any country.

Q: In your opinion, do we still need a regulator if the banks are collapsing anyway?

A: Federal and state governments have various organizations set up that control and administer…

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: 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: Why does a money has an intristic value and a currency doesn't have an intristic value?

A: The estimate of an asset's worth based on a financial model is known as the intrinsic value in…

Q: How would a person show that they “beat the market”?

A: The term basically means that through, say, an index fund,invest in something that has a higher…

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: Explain and critically evaluate advantages and disadvantages of fiat money.

A: US dollar, Australian dollar, New Zealand dollar,..... are all fiat currencies , meaning that the…

Q: what is the primary difference between hard money & soft money

A: The origins of the concepts of hard money and soft money can be traced back to the 1970s and 1980s,…

Q: What is a Bankers’ Acceptance?

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

Q: How one determines where to borrow or not? What factor into the decision making process?

A: The act of borrowing money or the sum of money borrowed by an individual, company, government, or…

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 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: Why would a corporation want to factor its receivables if it would only receive a fraction of the…

A: Introduction: Factoring is nothing more than discounting bills receivables before the due date to a…

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: -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 is failure of competition?

A: The question is based on the concept of economic failure of market due to imperfect situation

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: 3. If banks heeded Shakespeare's admonition “Neither a borrower nor a lender be", what would happen…

A: If banks had noted Shakespeare's rebuke, the circular flow of the economy will become much smaller.…

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: 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 is the asset-liability time mismatch that all banks face?

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

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.