How do finance companies make money? What risks does this process entail? How do these risks differ
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (10 reviews)
Finance companies make a profit by borrowing money at a rate lower tha...View the full answer
Answered By
Rustia Melrod
I am a retired teacher with 6 years of experience teaching various science subjects to high school students and undergraduate students. This background enables me to be able to help tutor students who are struggling with the science of business component of their education. Teaching difficult subjects has definitely taught me patience. There is no greater joy for me than to patiently guide a student to the correct answer. When a student has that "aha!" moment, all my efforts are worth it.
The Common Core standards are a useful yardstick for measuring how well students are doing. My students consistently met or exceeded the Common Core standards for science. I believe in working with each student's individual learning styles to help them understand the material. If students were struggling with a concept, I would figure out a different way to teach or apply that concept. I was voted Teacher of the Year six times in my career. I also won an award for Innovative Teaching Style at the 2011 National Teaching Conference.
4.90+
4+ Reviews
10+ Question Solved
Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
Question Posted:
Students also viewed these Banking questions
-
What is the primary function of finance companies? How do finance companies differ from depository institutions?
-
What type of credit derivatives contract would you recommend for each of the following situations: a. A bank plans to issue a group of bonds backed by a pool of credit card loans but fears that the...
-
a. Explain how finance companies are unique by comparing Fente's net interest income, noninterest income, noninterest expenses, and loan losses to those of commercial banks. b. Explain why Fente...
-
(a) Decide whether each of the following expressions are true or not. Answer yes or no. In any case where it is not true, provide the actual O-complexity. (i) log n = O(n!) (ii) 10! = O(log n) (iii)...
-
Suppose we choose 12 people instead of the 5 chosen in Exercise 57 a) Find the mean and standard deviation of the number of right-handers in the group. b) Whats the probability that theyre not all...
-
Compute the value of P for the following diagram 120 120 120 50 50 50 i-10%
-
Describe the responsibilities of patients as reviewed in this chapter.
-
The following pertains to the Cereal Division of McKenzie Corporation. Conversion costs for this division were 80 percent complete as to beginning work-in-process inventory and 50 percent complete as...
-
The field of project management is extremely complex. To be successful, a project manager must be familiar with a variety of tools, methodologies, and information. The definition of a project's...
-
ARCH began the year with the following balances (shown in alphabetical order) in their accounts: Accounts Payable ...................................................................... $27,000...
-
What have been the primary sources of financing for finance companies?
-
Compare Tables 3-1 and 2-6. Which firms have higher ratios of capital to total assets: finance companies or commercial? What does this comparison indicate about the relative strengths of these two...
-
Assume that, instead of issuing a fixed number of shares, the directors of Celibes plc wish to maximise the amount raised from the share issue. What would be the appropriate striking price?
-
Which system do you think ensures that the best possible representation is provided to indigent defendants, assigned counsel, contract, or public defender?
-
Which contract attorney program, either fixed price or fixed fee, do you think is better? Can you think of any other way that a contract program could operate?
-
Do you think more of an effort should be made to increase public perception of public defenders given the amount of criticism they receive?
-
Given that indigent defendants have no right to choose the counsel that is appointed to them, what do you think should be the solution if they do not like the attorney appointed them or cannot work...
-
Do you think the two-pronged test announced in Strickland creates too high of a standard by which to judge the effectiveness of assistance of counsel?
-
How many rows does B have if BC is a 3 4 matrix?
-
Proposals have been made to ?sail? spacecraft to the outer solar system using the pressure of sunlight, or even to propel interstellar spacecraft with high-powered, Earth-based lasers. Sailing...
-
Discuss some of the manifestations of the globalization of world capital markets.
-
There are three goods produced in an economy by three individuals: Good ........ Producer Apples ........ Orchard owner Bananas......... Banana grower Chocolate....... Chocolatier If the orchard...
-
Why were people in the United States in the nineteenth century sometimes willing to be paid by check rather than with gold, even though they knew that there was a possibility that the check might...
-
1. How does marketing create value, and how do firms become more value driven? 2. Describe a firm's stakeholders and how they are impacted by conscious marketing.
-
Beginning inventory 100 units @ $8.00 = $ 800 Purchase # 1 200 units @ $6.00 = 1,200 Purchase # 2 100 units @ $12.00 = 1,200 Total 400 units $3,200 Ending inventory is 150 units. 1. What is cost of...
-
Sam's Ice Creams, a cottage country favourite in Northern Ontario, has launched a new range of ice creams branded as "Summer Flavours." To capitalize on the cottage and tourism season from May to...
Study smarter with the SolutionInn App