True or false?  Interest received on loans made to borrowers is an example of an investing activity.

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: Equity financing is the borrowed funds from outside sources like loans, bonds and mortgages. True or…

A: Corporate finance is referred as the decision of the firm to take capital investments and other…

Q: Give and explain the factors that affect the interest rate on the loan

A: Following are the factors that affect interest rate on the loan:  1. Supply and Demand Interest…

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: Why is issuing a short-term note receivable an investing activity if it's short term and not long…

A: Short term note receivable are the notes that have maturity period of less than 12 months. Long term…

Q: What is the difference between a line of credit and a short-term loan?

A: Short term loan:   A loan is borrowed money that is to be paid back along with the interest. A…

Q: What would these securities be called and what does the Bank need to do to ensure the loan monies…

A: Loans refer to the agreement between the borrower and the bank or financial institution for…

Q: Describe some of the motives and mistakes made by the mortgage securitizers?

A: To market as well as attract borrowers for lenders.Evaluation of the borrower's credit…

Q: Many types of debt including auto loans, student loans and credit debt are securitized. The…

A: Securitization is the procedure where an issuer designs a marketable financial instruments by…

Q: From the standpoint of a borrower, is long-term or short-term credit riskier? Explain

A: credit risk is define as the chances of a loss due to  borrower's failure to repay obligation in…

Q: How did you get the loan repayment and bank loan?

A: Bank Loan is a non-current liability of the business and it is borrowed to finance long term plans…

Q: How long-term deposit accounts benefit borrowers

A: A deposit account is an account that is held by the customers of a bank and financial institutions…

Q: Write a persuasive statement either supporting or opposing a bank's right to assign a mortgage to a…

A: A mortgage payment usually consists of four main components: principle, interest, taxes, and…

Q: Credit card debt and commercial loans are easily among the most significant and familiar financial…

A: Credit card debt is a type of bank overdraft wherein the borrower needs to pay an interest amount…

Q: What are the primary tools, and how are they used by lenders when determining whether they will lend…

A: Introduction : The given question relates to the concept of creditworthiness. The creditworthiness…

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: Benefits of a savings account for borrowers ?

A: The saving account refers to the type of account in a bank that provides the facility to deposit the…

Q: Why is interest paid on amounts borrowed from banks and other lenders considered to be anoperating…

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: Methods/instruments that banks use to hedge the risks pertaining loans

A: Main function of a bank is to accept deposit and then offer loans as both individual and business…

Q: Why is it necessary for the bank to have the right to assign a mortgage to a third party (for…

A: Assignment of mortgage to a third party :  It is referred to as an agreement in loan obligations are…

Q: What are the advantages and disadvantages of financing assets through loans

A: Resource account is that the act of utilizing Associate in Nursing organization's financial record…

Q: Why can’t bank lend without a written loan policy? Explain in detail.

A: Lending procedure: There are certain steps that are followed in the procedure. this includes the…

Q: What is meant by a “purchase-money” mortgage loan? When could a loan not be a purchase-money…

A: A purchase-money mortgage loan is a loan that home sellers provide to the buyers of the home. Buyers…

Q: What are the factors that you need to consider in applying for a loan? Why is it important to…

A: When applying for a loan one need to consider several factors at play. Some of them are quantitative…

Q: How does compound interest affect the loans you undertake? For example, how would this  affect…

A: Interest is an additional value which is charged on borrowed or deposited amount. Interest can be an…

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 does it mean when a lender accelerates on a note? What is meant by forbearance?

A: Promissory note is written by the borrower and sent to the lender. In promissory note, borrower…

Q: why loan officer prefer accrual basis accounting

A: The financial statement of a firm can be prepared based on accrual basis of accounting or cash basis…

Q: What is interest earned by a lender but not yet collected? As well as what is interest earned by a…

A: Lender is the person who lends or provides money to other person in return of some interest as well…

Q: what are two types of credit

A: "We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: What are spontaneous sources of short-term financing and unsecured sources of short-term loans

A: The source of funds which are having a zero cost is termed as a spontaneous source of funds. It is…

Q: f a bank client requests a loan for the acquisition of real estate, what type of loan is he/she…

A: A. A refinance loan involves revision of loan terms. For example: If there is a drop in interest…

Q: . Accounts receivable financing is the term used to describe which of the following types of loans…

A: In Accounts receivable financing companies make a collateral of its account receivables to get loan…

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: why simple interest is important to use when borrowing money

A: Simple interest is also referred to as interest. It refers to the payment that is received from a…

Q: How does mortgage securitisation impact the financial market?

A: Mortgage securitisation or mortgage backed security is similar to a bond and is made up of a bundle…

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: The original amount of money in a loan transaction is known as what?

A: Introduction: A loan is nothing but an amount of money lent from one or more individuals or…

Q: "Describe what a line of credit involves, and explain the legal obligation of a bank to provide…

A: Line of credit is the understanding between the banks and its customers that defines the maximum…

Q: What happens when a student loans defaults?

A: Student loan is referred to as the type of loan, which is actually designed for helping the student…