Why is the practice of “holdbacks” used? Who is involved in this practice? How does it affect construction lending?

Q: Why is it essential to know different kinds of loans?

A: A loan helps in determining the money supply and helps new businesses in the lending process. The…

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: How does Leasing offer protection against the risk of declining asset values?

A: Leasing:    The term leasing defines that it is a process of renting a property to someone the…

Q: Critically discuss over-investment and under-investment problems due to debt usage. What kinds of…

A: Capital structure means the amount of debt and equity which the firm has as its capital. The company…

Q: Which of the following is a reason that banks may favor fee compensation over balance compensation?…

A: In order to increase their deposits and use them for loan, banks usually prefer fee compensation…

Q: How does the company can benefit indirectly by leasing assets rather than buying?

A: Company can take benefit of leasing assets rather than buying assets due to many reasons: Leasing…

Q: What is investment bank?

A: Investment bank: An investment bank (IB) is an intermediary of finance that does a diverse service.…

Q: What is a financial security?

A: Investors use financial security to be secured financially as they can get some income on periodic…

Q: What is capital rationing, what conditions lead toit, and how should it be dealt with?

A: Capital budgeting is a process in which capital projects are assessed in terms of their viability…

Q: WHAT IS A SMART CONTRACT? HOW CAN IT BE USED IN FINANCE?

A: Block technlogy is growing very much now days and it is used in finance quite much and this based on…

Q: What is the role of an underwriter?

A: An underwriter is an individual or institution that evaluates the risk involved in providing…

Q: What are the economic benefits of leasing vs ownership of assets?

A: MEANING:- Leasing of Assets - The leasing of assets refers when the owner gives the right to use…

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: Which is not an example of Asset?     Buildings     Debtors     Prepaid Insurance Expense…

A: Assets are the resources owned by a business. These are used to generate income  for a business and…

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 is it advantageous for a company to finance its receivables?

A: Accounts receivable is the amount due to a firm for the use of goods and services but not yet paid…

Q: What is net advantage to leasing (NAL)?

A: Leasing refers to an agreement between two parties to use asset of one by other in exchange of some…

Q: What are some of the difficulties in obtaining data to measure real estate investment performance?

A: Introduction: Real estate investment data is the pricing data for all investment property purchases,…

Q: what are the disadvantages of bill of exchange?

A: A bill of Exchange is a certificate of agreement between two parties where one party agrees to pay…

Q: What is Temporary financing?

A: There are various sources of temporary financing which are as follows: a) Commercial paper b) Bank…

Q: Write some of the examples of commercial loans?

A: Following are the examples of commercial loans: Term loan: A term loan is an advance from a bank…

Q: How does Leasing offer flexibility and a lower cost when disposing of the asset?

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: What is the role of Market Practice in Riba?

A: Riba (Islamic banking) It is charging of interest on loan/deposits. It is also a charge of an…

Q: What factors would tend to make leasing more desirable than owning?

A: Lease: Leases are agreements in which the proprietor of the asset permits another party to utilize…

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…

Q: What concerns are there regarding the Paycheck Protecting Program and the Main Street Lending…

A: Paycheck Protecting Program: It is the program launched to protect the salary of employees being…

Q: How does the cost of costly trade credit generally compare with the cost of shorttermbank loans?

A: Trade credit is that the quantity businesses owe to their suppliers on inventory, products, and…

Q: What is SBA Loans

A: Loans- Business loans, also known as commercial loans, are a type of finance used to fund business…

Q: Why is it favorable to invest in different investable assets?

A: Diversification is very important in investment to achieve the consistency.

Q: is purchashing something on credit an operating activity or a financial activity

A: Assuming that purchase of something as the purchase of inventory.

Q: What is the cost of accrued liabilities? If accruals have such a low cost, why don’tfirms use them…

A: An accrued liability refers to an expense a business has incurred during a specific period but has…

Q: Why might the cost of a mortgage loan be greater than the cost of using unsecured corporate debt to…

A: A mortgage shall be a credit the borrower utilizes to buy or retain a house and accepts to repay…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.