The _____ ratio gives actual losses on loans, while the ______ ratio gives the extent to which the bank’s assets are devoted to loans. a. loss rate; capitalization b. loss rate; loan risk

Q: increasing the company's debts on Return on Assets (ROA) and Return on Equity (ROE

A: Debt is the liability incurred by the company by borrowing for its financial needs.

Q: creditor mostly interested in а. Liquidity b. Efficiency С. Marketability d. Financial leverage

A: Creditors are the users of financial statement who analyses the company financial statement to…

Q: Using the macroeconomic environment of a bank explain the effect on margin. Provide an example of…

A: Margin is referred to as the type of deposit that an investor uses to place with their broker at the…

Q: Describe the Ratios that show the relationship of a firm's cash and other assets to its current…

A: Definition: Ratio analysis: It is the financial analysis tool for measuring the profitability,…

Q: w are statement of cash flows used to evaluate a loan request for a prospective borro

A: While giving the loan the lender there is need of cash flow statement is required specially when…

Q: Question: How to find contribution margin ratio Question: How to calculate accounts receivable…

A: 1. Contribution Margin Ratio represents the percentage of sales remaining after we consider all…

Q: Which ratio indicates the proportion of assets financed out of shareholders’ funds? (A) Debt equity…

A: Introduction: Any person, organization, or institution that owns stock in a company is a…

Q: profit margin ratios of bank proftability? please use in-text referencing

A: Gross profit margin may be a live of profit that shows the proportion of revenue that exceeds the…

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: debt service ratio measures? A. Profitability of the business B. The impact of debt funding to…

A: Debt service ratio means ratio of operating income available for debt service payments like…

Q: Which of the following is a formular for calculating free cash flow.   Select one: a. Interest…

A: Free cash flow is a measure of the cash generated by a company's operations that is available to be…

Q: Bank Intermediation Ratio also used to assess its liquidity*     Capital to Loans Ratio Deposits to…

A: Liquidity in banking is the ability of a bank to meet short-term business and financial obligations…

Q: Which is not a metric used by lenders to measure the overall suitability of a loan: 1) Loan to…

A: Loan to value ratio- It is a measure of indebtedness which divides the outstanding debt by the…

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: Which ratios are suitable for analyzing the bank’s business performance?

A: There are many groups ratios used to measure the performance of banking sector: Liquidity…

Q: Which of the following is an External sources of finance? a. Depreciation funds b. Retained…

A: Two sources of finance Internal and external

Q: e traditional 4 C’s of credit analysis, which is the ability of a company to make payments on time?…

A: 4Cs of credit are Collateral, Covenant, Capacity and character.

Q: Assess the bank in terms of profitability, liquidity, and capital adequacy. Use appropriate ratios…

A: Banking Financial Ratios Ratios that are particular to the banking sector include net interest…

Q: Which of the following transactions would result in an increase in capital employed? A. Paying a…

A: Capital Employed means amount of capital being invested in the business. This is also known as…

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: List and explain the types of financial ratios in lending.

A: Financial Ratios: Financial ratios are the ratios calculated on the basis of financial statements…

Q: what is the Cash paid to settle the principal on borrowed funds?

A: cashpaid to settle the principal on borrowed funds is called "principal repayment."this amount…

Q: None

A: The linear discriminant model given is: Z=β1​X1​+β2​X2​+2.0X3​ We need to determine the values of…

Q: The​ ________ is a measure of a​ company's ability to pay its current liabilities from cash and cash…

A: Cash conversion cycle is a working capital metric which expresses how many days it takes a company…

Q: which of the following source of finance comes with a line of credit ? a. Credit card b. Mutual Fund…

A: There are various sources of finance

Q: Identify the waysin which banks canmanage their assetsand liabilities to maximize profit

A:

Q: A bank's net interest margin represents the proportion of its investments that are financed with…

A: The difference between interest paid and interest received, adjusted for the entire amount of…

Q: Using balance sheet information, the ____ ratio indicates your ability to meet current debt…

A: Balance sheet is a statements which gives amount of assets and liabilities at a point of time.

Q: The course concerned with debtors is *

A: Option (a). Revenues is the correct answer

Q: The area of finance address the issue of the efficiency of financial market in the allocation of…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following is money kept by the firm with a bank in low-interest or non-interest bearing…

A: Loan is a part of financing in which a bank or institution lends money to the business in exchange…

Q: When is debt to asset ratio important when raising money

A: Debt to asset ratio is one of the important ratios that we use in finance. This is essentially a…

Q: When a lender looks at your FICO credit score to decide whether to lend to you, which of the "Five…

A: When a lender looks at your FICO credit score to decide whether to lend to you, he is considering…

Q: When Balance Sheets are being prepared, Assets and Liabilities are recorded at the current values,…

A: The correct answer for the above mentioned questions in the following steps for your reference.

Q: I.                                                What are terms of credit? From the viewpoint of a…

A: The following concepts are answered below.

Q: What are lines of credit? From the viewpoint of a short-term creditor, why do lines of credit…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: what the effect to asset, liability and owner's equity if the company receives cash from a bank loan

A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.

Q: effect to asset, liability and owner's equity if the company repays the bank loan

A: Bank loan is the amount borrowed from the bank. Upon repayment of bank loan, the bank loan account…

Q: A bank's required reserve ratio is equal to: Checkable Deposits/Required Reserves   Net Worth/Assets…

A: In the context of the given question, we are required to explain the required reserve ratio which is…

Q: What is Qualitative Asset transformation (QAT) and how does it facilitate financial intermediation…

A: QAT is an important concept related to banks and financial institutions. QAT, as the name indicates,…

Q: es the most accurate estimate of the net realizable value of the receivables. The reason for it is…

A: Allowance method It is a method for accounting for bad debt expense, where uncollectible accounts…

Q: Given a financial institution that make money in three ways: interest income, interest income, and…

A: Banks and Financial institutions make most of their money from loaning and re-loaning money. Low…

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: Explain CECL (“Current Expected Credit Loss”) model.

A: