Which of the following loans can be used for business expansion? a. Long term loan b. Line of Credit c. Short term loan d. All the options are wrong
Q: ........ is a link between savers & borrowers, helps to establish a link between savers & investors…
A: The financial market is the place where the savers and the borrowers meet. The borrowers refer to…
Q: Which of the following is not a primary function of Money? a. All the options are correct b.…
A: Money is any item or verifiable record that is generally accepted as payment for goods and services
Q: Which one of the following statements regarding the loans market is false? a) The principal-agent…
A: Please see the next step for the Answer
Q: Short term financing is financing that a borrowers pay off over shorter payment period. Small…
A: Short-term loan Short-term loan is a type of loan that is obtained to support a temporary personal…
Q: secured line of credit: Select one: a. is backed up by pledged assets b. is not backed up by pledge…
A: At the time of providing the facility of the line of credit, the financial institution has…
Q: Financing with Debt Versus Equity. It is commonly understood that the cost of financing a…
A: For any entity, there are two ways of raising funds: Equity Financing and Debt Financing. Companies…
Q: Which of the following is not a source of informal short-term finance? * A. Accrued wages B…
A: Financing is an act or a process of providing funds to the business in order to operate the business…
Q: Which of the following loans can be used for business expansion? a. All the options are wrong b.…
A: Loans are utilised by businesses for expanding their business operations. Loans are favoured when…
Q: re developing a new product and you use a 12% discount rate to compute its NPV. Your bank, from whom…
A: Discount rate of the project depends on the many factors that are going to be have impact on the…
Q: Q: Why might a new business be unable to get trade credit ?
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 1. Explain the difference between debt to income (DTI) ratio and loan to value ratio (LTV). In…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: why would a business lean towards a rights issue rather than pay for long-term loans?
A: When a company is selling shares to its employees, existing shareholders and parties related to the…
Q: Which of the following is true ? Select one : a . Investment bankers earn a spread based on the…
A: Investment bankers (IB) are the financial organisations which provide advice for the securities to…
Q: Determine the decision nature of each of the following issues: What are the least expensive sources…
A: Business organizations need to take various financial decisions in order to run the business…
Q: Which one of the following statements is wrong about finance? Select one: O a. The financial…
A: The financial market and finance industry are set in place to help facilitation between the holders…
Q: The rate of interest charged on loans from a country perceived to have no risk of defaulting is…
A: Risk-Free Rate: The theoretical rate of return on an investment with no risk is known as the…
Q: What does a proper loan structure accomplish for the borrower and the lender? A. Supports…
A: The term "loan structure" describes the range of options available to a lender when giving credit to…
Q: Canceling the original loan and signing a new loan agreement with different terms to settle troubled…
A: The question is related to Canceling the original loan and signing a new loan agreement with…
Q: Building a good credit rating is integral to which of the following? Ability to have access to…
A: Meaning: Credit rating is the measurement of the past performance of a company related to loans and…
Q: Determine the decision (the investment decision, or the financing decision, or the dividend policy…
A: Types of decisions: Investment decision- It involves determining the total amount of assets that…
Q: 1. if a small bank lends to a customer who wants a mortgage that is too large for the small bank to…
A: A loan is a financial transaction in which one or more individuals, organisations, or other entities…
Q: Which type of loan is suitable for buying supplies? O a. Single term O b. Long term O C. Medium-term…
A: Loan is defined as the amount of money borrowed from someone, usually a financial institution. Types…
Q: a- What is the maximum dollar amount of real estate loans that Old National Bank can grant? b- What…
A:
Q: True or False: When a company borrows money to finance the purchase of an asset to use in its…
A: Every organization's wants to achieve that much earing so that they can save amount after paying its…
Q: Discuss the factors inhibiting the development of the mortgage market in Ghana. What in your opinion…
A: Mortgage loan in Ghana are available from the banks or financial institution to the homebuyers.…
Q: d) State True or False for each of the following statements (: o Every financial market allows loans…
A: Answer: True. Every financial market allows loans to be made because it is one of the basic…
Q: One of the following is the drawback of local borrowing. Select one: a. None the options are correct…
A: The local borrowing refers to the amount that has borrowed by the local bank or local financial…
Q: When assessing the creditworthiness of new entrepreneurs, lending institutions review the “Five…
A: The five C's of credit are as follows: 1) Capital 2) Capacity 3) Collateral 4) Character 5)…
Q: Which of the following is related to the Time value principles of money and banking? a. Loan…
A: Time value principle of money states that money's worth decreases with time. Money's worth today is…
Q: Which of the following is a common sourde of export financing? a) A comercial bank loan b)Secured…
A: Export Finance - It is form of asset financed, specifically available for export oriented unit which…
Q: What are the four key factors in a firm's credit policy? how would a relaxed policy differ from a…
A: Credit Policy relates to guidelines and terms of entity to facilitate credit sales that includes…
Q: We say that refinancing a loan is an "investment." Why? How could taking out a new loan, and paying…
A: When the terms of an existing loan, such as interest rates, payment schedules, or other…
Q: Which is more favorable for a business - huge debts or small debts? Justify your position
A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…
Q: Which below is not one of the factors determining the mix of banks loan? * a. Market size…
A: Factors determining the mix of bank loan portfolio: Bank size Customer size characteristics of the…
Q: Which of the following is the principal risk faced by a home equity lender? a. Interest rates in…
A: Home equity lenders provide loans to the borrowers to buy house. A home equity loan refers to the…
Q: . Transferring the credit risk of loans from their balance sheet to other fin .Reducing due…
A: Loans after some time increase the risk and institutions giving loans become highly illiquid and…
Q: e investment banker does all of the following except a. make long-term investments for banking…
A: Investment bankers are finance expert who work in raising money for business and help business in…
Step by step
Solved in 2 steps
- Which of the following type of loan is best used for temporary shortfalls of income? a. Secured loans b. Long Term Loan c. Line of Credit d. Short-Term Loan7- Which of the following loans can be used for business expansion? a. All the options are wrong b. Short term loan c. Line of Credit d. Long term loanplease answer and explain What does a proper loan structure accomplish for the borrower and the lender? A. Supports everyday operations; maximizes flat fees charged for the loan B. Minimizes interest fees; restricts the client from making any risky decisions C. Satisfies financial needs; optimizes profitability D. Maximizes available funds; charges the highest interest rate
- Which of the following is not a way in which banks lend short-term unsecured loans? a. Through a guaranteed credit line that has a commitment fee for any unused amount for the year b. Through credits cards lines with a certain credit limit c. By sending the amount earned from trust and investment products offered by the bank d. By lending a single date maturity loan to a debtorWhich of the following is the function of the financial market ? Select one : a . It decides the interest rate b . It makes loan available c . It channels funds from lenders - savers to borrowers - spenders D. None of theseWhat are the 5 Cs of credit that are sometimes used by bankers and others to determine whether a potential loan will be repaid?
- Which is not a metric used by lenders to measure the overall suitability of a loan: 1) Loan to value ratio 2) Debt service coverage 3) Debt yield. 4) Effective rent per square foot choose 1Δ%(MV) = -MD*Δr When we use this equation to evaluate a loan, this equation does not totally reflect the change in the present value of loans mainly because of the ignorance of which of the following factors a. Convexity b. Maturity c. Duration d. ImmunizationExplain the market value and if the company has a chance of success if they apply for a loan
- (1) How does getting a secured loan using accounts receivable as collateral differ from factoring? (2) Why would lenders want to see that a business already has some level of capitalization before giving it access to more capital by means of a loan?Which of these statements is true? A)There is no reason to pay off a loan early B) when shopping for a loan, you need to compare only APRs C) the more you owe, the higher your interest payment will be D) you can save money by making the smallest down payment the lender will allowWhich of the following has the highest relative likelihood of being defaulted in paying the outstanding loan? Company AB. Company EF. Company CD. Company GH.