For purposes of Graham, Leach Bliley, financial institutions can include banks and insurance companies but not auto dealerships that offer loans. True False
Q: Loan structuring is the process of designing a loan to satisfy the financing demands of a business…
A:
Q: The Sarbanes-Oxley Act was a market response to accounting fraud, and the Dodd-Frank act was a…
A: The Above Statement "The Sarbanes-Oxley Act was a market response to accounting fraud, and the…
Q: Bankers who are processing loan applications from companies seeking large loans will probably ask…
A: Financial statements: Financial statements are prepared to summaries the account at the end of…
Q: Cash received from loans is a deposit other than customer payments. Group of answer choices True…
A: Cash received from the loan is considered as the current liabilities with the name of deposits.
Q: A customer of a Bank Nizwa wants to know about the accounting treatment of advancing loans to Public…
A: Introduction: Income statement: All revenues and expenses are shown in Income statement. It tells…
Q: The author uses the term "bank" to describe several different types of financial institutions.…
A: Insurance may be a deed, described by a policy, in which a protection supplier offers an individual…
Q: Bank rates on credit card balances are usually similar to the rate charged on business loans.…
A: A credit card's interest rate, often known as a 'financing charge,' is the rate levied by credit…
Q: Bank Muscat advances secured and unsecured loans to their customers. If Bank Muscat is issuing…
A: Secured loans are the loans which provided to borrower after taking collateral security. Unsecured…
Q: True or false: An example of a soft inquiry would be a credit card company looking into your credit…
A:
Q: when a company establishes a credit line with a bank, it is the same as borrowing from the bank True…
A: Credit line is similar to taking a loan but in credit line loan is taken on a regular basis. There…
Q: In corporate liquidation of a closed bank, which of the following unsecured credits is classified as…
A: Liquidation refers to the winding up of business entity by realizing all the assets and pay off the…
Q: Investment Banks & Securities Firms O A. Are depository institutions O B. Are not depository…
A: A financial institution is an intermediary that helps to move funds from surplus units to deficit…
Q: 1.Explain the basic principles of good banking credit and the internal causes of the Bank that cause…
A: One of the important functions of the bank is to provide credit to the borrowers, however, they…
Q: Overdrafts are a result of a. loans made against certificates of deposit b. banks paying wire…
A: Very easy and low cost convenient way of getting loan are draft loans.
Q: A company seeking a line of credit at a bank was turned down. Among other things, the bank started…
A: The ideal current ratio is considered to be 2:1 on the idealogy that the company has to have 2 times…
Q: How can bankers be spotting potential fraud among the loan granted
A: Bank loan means the loan given by the bank to the borrower. This loan can be provided for short term…
Q: Which one of the following combinations relating to the above statements is correct?
A: (1) Businesses should deny credit to customer to eliminate the costs of collecting trade…
Q: Accounting fraud is the intentional manipulation of financial statements to create a false…
A: Meaning of Accounting Fraud: Accounting fraud refers to intentional manipulation of financial…
Q: Identify which one of the following is a meaning of the term Bankrupt: a. A person or company is…
A: Bankruptcy involves legal proceedings of a business when the business is unable to service its debt.
Q: Which one of the following statements is false? a. Consumer loans are loans banks advance to…
A: Solution:- Loans means the advances made by the bank to the customers, while deposits means the…
Q: Suppose a bank offered to make loans to potential borrowers without checking their credit history.…
A: The banks generate their income mainly from the difference between the lending rate and the rate…
Q: A drawer, knowing that he has insufficient credit in the bank, issues a check, which was eventually…
A: A drawer is the person who draws a check to the drawee in order to fulfil some financial obligation.…
Q: LENDER LOAN PRODUCTS SIGNIFICANT FEATURES Consumer finance Automobile loans They do not accept…
A: Consumer Finance: When a business or retailer provides its consumer's financing choices, they can…
Q: Direction: Answer the following questions. The main difference between other financial institutions…
A: A financial institution (FI) is a firm that deals with financial and monetary activities such…
Q: Could efforts to avoid conflicts of interest lead an investment bank to provide poor service to a…
A: An investment is a financial institution that provides services to the company. Mainly, the clients…
Q: Bankers who are processing loan applications from companies seeking large loans willprobably ask for…
A: Given case is: Bankers who are processing loan applications from companies seeking large loans…
Q: Except for those who actually are planning to commit fraud, every borrower who ever applied to a…
A: The loans and advances given to bank’s customer will comprise the bank’s asset. When the returns or…
Q: s decreasing provisions for bad debts and loan a good recommendation for a bank
A: Loan loss provisions enable banks to recognize an estimated loss from a particular loan portfolio in…
Q: The fraud scheme that is similar to the ‘‘borrowing from Peter to pay Paul’’ scheme is a. expense…
A:
Q: As long as a financial planner is certified you need not worry about his ability to provide you with…
A: A financial planner is a qualified advisor on finance who advises his/her clients on personal…
Q: True or False: All credit counseling companies act in good faith, and you should not have to worry…
A: Credit counselling is a process wherein credit counsellors guide individuals on financial…
Q: What are the most common approaches that perpetrators use to commit fraudulent financial reporting?…
A: A fraud in an audit is an activity performed with the intent of deceiving the users of the financial…
Q: A company seeking a line of credit at a bank was turned down. Among other things, the bank stated…
A: Current Ratio: A current ratio is comparison between the current assets and current liabilities…
Q: Which of the following is NOT a type of depository institution? O Commercial Banks O Savings and…
A: Those financial institutions that have the authority to obtain the funds in the form of deposits…
Q: Fraud is not an accounting problem - it is a social phenomenon. Explain.
A: Fraud is defined as any unethical behavior or trickery committed by one person against another.…
Q: Answer the following two related questions: 1- When treating loans as sales, using for example…
A: Special Purpose Entity is a legally separate business that absorbs risk for a corporation. A SPE can…
Q: The author uses the term "bank" to describe several different types of financial institutions.…
A: Following are different types of financial institutions to describe the term "bank". Savings…
Q: What is the function of Deposit Insurance Corporation? Select one: It does not give guarantee…
A: Deposit insurance corporation is for safety of deposits and for the safety of banks and financial…
Q: Which of the following are regulations that are designed to reduce the moral hazard created by…
A: Moral hazards are present in the systems of deposit insurance. In a system with no deposit…
Q: Which of the following statement is correct ? i. Commercial bank is a Banking Financial Institution…
A: Financial institutions benefit the majority of people in some form, as financial operations are an…
Q: In a bank, the employee interacting with someone seeking a loan does not have the authority to grant…
A: PLEASE LIKE THE ANSWER IT IS THE PART OF BANK'S INTERNAL CONTROL. As, THAT THE PERSON ADVISING THE…
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For purposes of Graham, Leach Bliley, financial institutions can include banks and insurance companies but not auto dealerships that offer loans. |
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- Except for those who actually are planning to commit fraud, every borrower who ever applied to a bank promised to pay the loan back, and planned to do that. Yet, banks always seem to have some bad debt, debt that is "non-performing." How does a bank minimize the losses from bad debt?What is the law that protects investors from fraudulent financial accounting activity? FASB SACS SOX CPASThe author uses the term "bank" to describe several different types of financial institutions. Which of the following is NOT included under the group of firms called banks by Mishkin? A. Commercial bank B. Credit union C. Insurance company D. Savings and loan institution
- Your company provides credit to customers. Someof these customers default on their loans, with verynegative implications for you. Describe how you coulduse discriminant analysis to learn what distinguishesthe customers who default on their loans from thosewho pay back their loans. How might you use such amodel?Loan structuring is the process of designing a loan to satisfy the financing demands of a business borrower. At the same time, it tries to protect the lender against losses caused by the borrower's refusal to repay the debt, as well as the interest and fees associated with it. Determine the process of credit facilities structuring that takes place in the bank.A Letter of Credit (LC) is a document that guarantees the buyer's payment to the sellers. It is issued by a bank and ensures timely and full payment to the seller. If the buyer is unable to make such a payment, the bank covers the full or the remaining amount on behalf of the buyer. Why would the bank pay the remaining amount on behalf of the buyer, and what would be the risk exposed to the bank? Please explain thoroughly.
- Banks may deny creditworthy borrowers loan requests if a. they are non-corporate entities b. they are on late on paying taxes c. the loan is too risky d. they are individualsWhich of the following statements is false? A. Moral hazard is the lack of incentive to guard against risk where one is protected from its consequences. B. Information about a bank’s activities and financial performance is available in the bank’s financial statements. C. As long as everyone continues to accept the paper bills in exchange, they will have value and serve as currency. D. To an economist, money is the stock of assets that can be readily used to make transactions.Which statement is incorrect? a. Information and transaction costs related to financial market transactions would be higher if there is no participation of financial intermediaries. b. The common trait of savings banks, commercial banks, credit unions and savings and loan associations is that all of them accept deposits from SSUs and provide credit to DSUs through loans and purchases of securities. c. Finance companies act as a factor by purchasing a firm's receivables at a discount and subsequently processing and collecting the balances of these accounts. d. A lending company operating in the Philippines cannot charge more than 12% annual interest on the loans it grants to borrowers. e. none of the above
- Loan covenants are used for which of the following reasons?a. To protect the lender from the borrower’s substantially weakening of the latter’s financial position.b. To protect the borrower from the lender’s calling the loan early.c. To protect the auditors from false information by the borrower.d. To protect shareholders from management taking on too much debt.Suppose a bank offered to make loans to potential borrowers withoutchecking their credit history. What would be true of the types ofborrowers they would attract compered with banks that did checkcredit history. Would such a bank charge the same interest rateon loans as banks that check credit history? Explain those with areason in 4 lines.Which statement is incorrect? Information and transaction costs related to financial market transactions would be higher if there is no participation of financial intermediaries. The common trait of savings banks, commercial banks, credit unions and savings and loan associations is that all of them accept deposits from SSUs and provide credit to DSUs through loans and purchases of securities. Finance companies act as a factor by purchasing a firm's receivables at a discount and subsequently processing and collecting the balances of these accounts. A lending company operating in the Philippines cannot charge more than 12% annual interest on the loans it grants to borrowers. none of the above
