Question 2 a) Explain the following different types of credit advances and when firms use it (i) Bank overdraft (ii) Syndicated loan (iii) Factoring b) Discuss the advantages and disadvantages of factoring service to businesses?

Q: Please explain what is direct and indirect financing? What is the role of banks in direct c.…

A: Financing is the process of raising funds for the business activities, to meet out payment…

Q: 1b) Banks offer overdraft facilities and term loans, among other services, to their corporate…

A: The answer is stated below:

Q: Could you explain the relationship between money, credit, and financial firms? Explain

A: A financial institution (FI) is a firm that deals with financial and monetary transactions such…

Q: It is an average interest rate that banks offer in the financial market: a. effective rate b.…

A: Effective Rate: It is the interest rate on a loan provided or financial security restated from the…

Q: What are the effects of lending institutions on the economy?

A: Economy has different functions to maintain like the currency management, trading activities,…

Q: (1) How does getting a secured loan using accounts receivable as collateral differ from factoring?…

A: Hi student Since there are multiple questions, we will answer only first question. Sales means…

Q: What is bank profitability? and market customer size and the concept of profitability? and…

A: Bank Profitability: Like all businesses, banks profit by earning extra money than what they pay in…

Q: What is the ultimate objective of financial management?   Question 7 options:     to ensure the…

A: Financial management is the process of planning, organizing, controlling, and monitoring the…

Q: Compare and contrast banking to non-banking institution. How these greatly affect the business…

A: Non-banking institutions are an important element and part of the financial market. They, along with…

Q: What are the advantages and disadvantages of implementing credit scoring within a financial…

A: The credit scoring is calculated by checking the payment history of an individual, credit mix,…

Q: The financial performance of both Commercial Banks and Savings Banks is measured using the Net…

A: The net interest margin is referred as the net benefit of lending which derived from the lending and…

Q: What does gross operating margin ratio assess in a banking institution ?

A: The gross operating margin ratio assesses the amount of operating revenue a banking institution has…

Q: Which of the following is part of the payments system of the economy? A. currency B. demand deposits…

A: A payment system is any mechanism that settles banking transactions by transferring monetary value.…

Q: Which of the following is a Long Term Source of Finance? a. Customer Advances b. Equity Shares c.…

A: Financial instruments are instruments that have some monetary value and are created due to the…

Q: ( ) is responsible for conducting monetary policy by influencing money supply and interest rates. a.…

A: Option C. A Central Bank   Central Bank is responsible for influencing the monetary policy of the…

Q: Could you explain the relationship between money, credit, and financial institutions

A: Money is the center of the universe. Money is being used to buy and sell goods and services..…

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: Which of the following has caused banks difficulty in estimating liquidity needs? A. competition for…

A: It is the institution that deals with financial and monetary transactions in the economy.

Q: A bank that grants loans to firms in a many different lines of business:  will increase its…

A: When a bank grants loans to firms in different lines of business then it has to incur more expenses…

Q: Which of the following is the function of the financial market ? Select one :  a .  It decides the…

A: The financial system is the most important factor in economic transformation. Finance helps bridge…