You have been hired as a consultant to Freedom Inc. a consumer-focused financial institution intending to enter the Ghanaian market. Critically analyse what factors you shall consider in advising Freedom Inc. on how it should set its lending interest rates, accounts commissions, fees & charges
Answers
Everywhere in the world the lending rates, account commissions, fees, and charges that financial institutions fix are determined chiefly by two factors:
The rules, policies, regulations, and rates of the Central Bank; and the market position of the competition.
a.
Central Banks or the Federal Reserve Bank (as it is called in the United States of America are the chief administrators of interest rates. This is no different in Ghana. By policy, the Central Bank fixes what is referred to as discount rates. When commercial banks in Ghana go to the Central Bank to borrow funds, it usually comes at a particular interest rate known as the discount rate. Commercial banks, in turn, lend these funds to their customers at a rate that is higher but NOT LOWER than the Federal Reserve Bank's discount rate. Banks make a profit when they take up these funds at a lower rate than the Federal Reserve Bank and lend it to customers at a higher rate. Banks also borrow funds from customer deposits. They borrow from these deposits and give loans to other customers. They also turn a profit when the rate at which they borrow from customer deposits is higher than the rate at which such funds are paid back to them by the borrowers. This net difference (profit to the bank) is called Net Interest Margin. Therefore, in setting lending rates, the discount rate of the Central Bank must be factored into consideration.
b.
So banks can arbitrarily charge any rate above the central bank's discount rates, that they can lend funds to consumers. However, they must take into consideration the actions of other banks. If other banks are giving out loans are a 5% margin above the Central Bank's discount rate, to fix a higher margin may translate to not being able to get customers at all to take up their loans.
c.
Commercial banks must also take into consideration the Central Banks reserve requirements.
In simple terms, Reserve Requirements is the mandatory percentage of its cash that a commercial bank or financial institution must keep with the Federal Reserve Bank.
This requirement and the discount rate are collectively called Monetary Policy tools. The higher the reserve, the lower the amount of cash available for lending by the financial institution.
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Related Questions
The first step of writing process is drafting. Describe what needs to be done during this step.
Answers
Answer:
Writing is a process that involves at least four distinct steps: prewriting, drafting, revising, and editing. It is known as a recursive process. While you are revising, you might have to return to the prewriting step to develop and expand your ideas.
Organism X is a brand new species to science. It lives deep in caves and thrives by absorbing carbon from other organisms. This organism is likely a:__________
a. chemoautotroph
b. photoheterotroph
c. photoautotroph
d. chemoheterotroph
Answers
Answer:
d. chemoheterotroph
Explanation:
chemoheterotrophs "are organism deriving energy by ingesting intermediates or building blocks that it is incapable of creating on its own. "
A Registered Investment Adviser has discretionary control over 50 accounts that range in value from $200,000 to $1,500,000. She receives a free due diligence trip from a real estate limited partnership sponsor to inspect a property in Florida. She is enthusiastic about the investment potential and purchases a $50,000 real estate limited partnership unit in the property for each of her accounts. The RIA disclosed the fact that she received the free trip to each of her customers before making the purchases. Which statement is TRUE?
Answers
The best answer is B. It really does not seem likely that the partnership units were suitable for each and every one of the investment adviser's 50 accounts - the investment appears to have been bought for these accounts without regard to suitability.
three reasons except politics for the looting of shops,malls and the destruction of business property in Gauteng and KwaZulu Natal
Answers
Si se tiene un activo de Q50,000.00 menos un patrimonio de
Q20,000.00, ¿cuál será el pasivo de la empresa?
Answers
Answer:
I think this is an English server, loveee! Sorryyyy
Explanation:
Business leaders will be more effective if they are first able to prevent
A.Necessary attrition
B.Poor Training
C.Wage increases
D.legal issues
Answers
Business leaders will indeed be much more effective if they can prevent B. Poor Training.
Being an effective business leader.Need to be able to strategize effectively.Need to be supported by a good workforce.If the employees are poorly trained , they will lack the requisite skills required to properly back up their leaders. If these leaders can therefore limit this poor training, they would be much more effective.
In conclusion, option B is correct.
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Everything else held constant, a decrease in the value of the dollar relative to all foreign currencies means that the price of foreign goods purchased by Americans
A) increases
B) decreases.
C) remains unchanged.
D) either increases, decreases, or remains unchanged.
Answers
B or C
Explained :)
It is decreased
I guess because the value of dollar is decreased....!
It may remain unchanged ?
Which of the following accounts would the income statement of a merchandise and service company contain?
a. Asset and Liability
b. AR and Inventory
c. Inventory and Unearned Revenue
d. Inventory and COGS
Answers
Answer:
It is option d: Inventory and COGS.
Explanation:
Hope it helps
Inventory and Cost of Goods Sold (COGS) would appear in the income statement of a merchandise and service company.
What Is an Inventory?
Both the raw materials used in production and the finished commodities that are offered for sale are included in the definition of inventory. One of a company's most valuable assets is its inventory because it is one of the main sources of revenue generation and, consequently, a source of profits for the company's shareholders. There are three different categories of inventory: finished commodities, work-in-progress, and raw materials. On the balance sheet of a company, it is listed as a current asset.
To consign their inventory, several producers work with merchants in partnerships. Inventory held by a customer but owned by the supplier or producer (often a wholesaler) is known as consignment inventory (generally a retailer). Once the inventory has been sold to the final buyer or has been consumed, the customer purchases it (e.g., to produce their own products).
The fact that the client promotes and makes the provider's goods easily accessible to end consumers is advantageous to the supplier. The customer benefits because they wait to spend money until it is lucrative for them. This implies that they only buy it when the customer does, or until they need the inventory for their operations.
What is cost of goods sold?The cost of goods sold is a measure of the "direct cost" involved in producing any goods or services. It is directly related to revenue and includes material costs, direct labor costs, and direct factory overheads. The expenses incurred by the company in producing the products or rendering the services it offers are included in the cost of goods sold. These expenses may include the variable costs related to producing items, such as labor and raw materials.
Additionally, depending on the applicable accounting principles, they may also include fixed costs such as factory overhead, storage charges, and occasionally depreciation expenditure.
It excludes general selling costs like managerial salaries and marketing expenditures.
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An urban economist wishes to estimate the mean amount of time people spend travelling to work. He obtains a random sample of 60 individuals who are in the labour force and finds that the mean travel time is 30.5 minutes. Assuming that the population standard deviation of travel time is 20.5 minutes, construct and interpret a 90% confidence interval for the mean travel time to work. (Note: the standard deviation is large, because some people work at home and thus travel 0 minutes and some people take transit which results in large travel times).
Answers
Answer:
An urban economist wishes to estimate the mean amount of time people spend traveling to work. He obtains a random sample of 50 individuals who are in the labor force and finds that the mean travel time is 24.2 minutes. Assuming the population standard deviation of travel time is 18.5 minutes, construct and interpret a 95% confidence interval for the mean travel time to work. Note: The standard deviation is large because many people work at home (travel time =0 minutes) and many have commutes in excess of 1 hour. (Source: Based on data obtained from the American Community Survey.)
Explanation:
An urban economist wishes to estimate the mean amount of time people spend traveling to work. He obtains a random sample of 50 individuals who are in the labor force and finds that the mean travel time is 24.2 minutes. Assuming the population standard deviation of travel time is 18.5 minutes, construct and interpret a 95% confidence interval for the mean travel time to work. Note: The standard deviation is large because many people work at home (travel time =0 minutes) and many have commutes in excess of 1 hour. (Source: Based on data obtained from the American Community Survey.)
Andy has been asked to report at a war zone to serve as an officer in the army. Which of the following statements is true in the context of the given situation?
a) Andy's employer can require him to take three weeks of paid vacation while he is deployed.
b) Andy's employer is required by federal law to pay him the difference between his military pay and his civilian pay.
c) Andy's employer is required to give him military leave. But, if Andy has been called for training, he should use his personal vacation days rather than take leave.
d) Andy's employer is not required by law to continue to pay him either in total or in part.
Answers
The correct answer is C.
Andy's employer is required by federal law to pay him the difference between his military pay and his civilian pay is true in the context of the given situation. Thus, option B is correct.
What is a report at a war?When requesting permission to speak with your commanding general, typically in her workplace, reporting is the formal approach to make an announcement of your presence.
In basic training, it's likely that you won't have the opportunity to talk with your superior general in her office—assuming you don't get in serious trouble for performing something incredibly. You must instead appear before your training trainer at her desk.
In order to serve as an army officer in a combat zone, Andy has been instructed to report there. It is accurate to say that Andy's employer must reimburse him for the disparity between his pension payments and his normal wage under the circumstances.
Therefore, option B is the correct option.
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Why are marketers putting so much emphasis on developing strong brands?
Answers
Explanation:
Beyond just a memorable logo, good branding increases the value of a company, provides employees with direction and motivation, and makes acquiring new customers easier. ... A brand represents the sum of people's perception of a company's customer service, reputation, advertising and logo
What resources do consumers typically have in limited supply that forces them to make trade-off decisions in consumption?
A. time, money, and attention
B. money, labor, and capital
C. time, attention, and capital
D. natural resources, land, and labor
Answers
Answer:a
Explanation:
The resources are time, money and attention
A consumer can be described as an individual that buys the good and services from a seller Resources needed to satisfy human wants are limited while human wants are unlimited. Due to this, consumers have to make a trade-off Trade-off is the opportunity cost of making a decision. It is the option that is forgone when a consumer chooses to consume a particular good over other goods. Rational consumers would choose to consume the good that yields the highest utility. The resources of consumers are time, money, and attentionFor example, assume a consumer has $100. The consumer can either use the money to purchase an economics textbook or jeans. The consumer would choose the option that yields the higher utility. This an example of trade off Also, a student would have to decide if to spend her time studying or partying.To learn more about resources, please check: https://brainly.com/question/15717700?referrer=searchResults
4.
Which one is NOT an advantage of Entrepreneurship:
ut of 1
Select one:
a. Can choose a business of interest
b. Make a lot of money
c. You will make decisions alone
d. You can be creative
Answers
Answer:
C
Explanation:
I chose C because I would like to work with other people.
You will make decisions alone is not an advantage of Entrepreneurship. Hence, option C is correct.
Even completely new sectors that serve as the catalysts for future expansion may be founded by entrepreneurs. Entrepreneurs' innovative goods and services open up new markets and generate riches. Moreover, entrepreneurship-related gains in income might contribute to an increase in the country's GDP.
The ability to take the initiative, adapt to change, come up with original ideas, and feel at ease with risk are just a few of the remarkable qualities that define the entrepreneurial mindset.
The aptitude and preparedness to create, plan, and manage a business enterprise—along with all of its uncertainties—in order to turn a profit is what is meant by entrepreneurship. The creation of new firms is the most visible illustration of entrepreneurship.
Thus, option C is correct.
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The Goods Available for Sale total is __________.
a) $43,000.
b) $11,000.
c) $97,000.
d) $69,000.
Answers
Answer:
c 97,000
Explanation:
Cost of goods available for sale equals the beginning value of inventory plus the cost of goods purchased.
Anyone else having this issue with Spotify with your ''following'' artists? I'm following more as I'm scrolling through but it's still at 33 Following. Anyone knows how to fix this issue or is it common? But no, seriously, please let me know if there's a way to fix it. If at all.
Answers
Answer:
go to page 5
Explanation:
A portfolio consists of three index funds: an equity index, a bond index, and an international index. The portfolio manager changes the weights periodically according to forecasts for each sector. This is an example of __________.
Answers
Answer: IM pretty sure it is False
Explanation:
Briefly explain the weaknesses of the RSA's Industrial Development Zones?
Answers
You're doing a monthly bank reconciliation and have the following information:
Current book balance: $19,250
Balance per bank statement: $15,000
Outstanding checks: $2,000
Bank fees: $250
Deposits in transit: $6,000
What is the reconciled cash amount?
A) 13,250
B) 17,000
C) 19,000
D) 20,750
E) 21,250
Answers
The reconciled cash amount is $19,000.
Bank reconciliation statement:Current book balance $19,250
Less: Bank fee ($250)
Reconciled cash amounts $19,000
Balance per bank statements $15,000
Add:Deposit in transit $6,000
Less:Outstanding Checks ($2,000)
Reconciled Cash Balance $19,000
Therefore we can conclude that The reconciled cash amount is $19,000.
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Scientific management approach has lost its relevance. How might today's
organization use it?
Why do you think managers have difficulty delegating?
Answers
Answer:
syntific mamagement loss it relevance its relevs today it will might today it will not lost revalance
For each of the following, identify whether it would be disclosed as an operating, financing, or investing activity on the statement of cash flows under the indirect method.
a. Purchased buildings SelectFinancingInvestingOperatingItem 1
b. Sold Patents SelectFinancingInvestingOperatingItem 2
c. Net income SelectFinancingInvestingOperatingItem 3
d. Issued Common Stock SelectFinancingInvestingOperatingItem 4
e. Paid cash dividends SelectFinancingInvestingOperatingItem 5
f. Depreciation expense SelectFinancingInvestingOperatingItem 6
Answers
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What is a brand audit?
A. The response of a local focus group
B. A comparison of your business and your competitors' businesses
C. An annual analysis of customer perceptions versus your branding efforts
D. A government assessment
Answers
Answer:
C
Explanation:
I'm pretty sure its this?
It takes place annually and is a checkup that evaluates your brand's position in the marketplace, its strengths and weaknesses, and how to strengthen it.
an annual analysis of customer perception versus your branding efforts
An agile team collects the iteration metrics they have agreed upon during which part of the team retrospective?
Answers
Why you should go for SaaS White Label Solutions?
Answers
Answer:
Many businesses hesitate to go for SaaS white label solutions because they think they would have less control over the product. However, the advantages of white labeling will outweigh the drawbacks.
Increased Brand CredibilitySave TimeSave MoneyIf you’re planning to start a SaaS company or already have one and want to integrate some tools, a SaaS white label is a good option for you.
What are the main features of an oligopolistic market?
Answers
Answer:
Few firms: ADVERTISEMENTS: ...Interdependence: Firms under oligopoly are interdependent. ...Non-Price Competition: ...Barriers to Entry of Firms: ...Role of Selling Costs: ...Group Behaviour: ...Nature of the Product: ...Indeterminate Demand CurveExplanation:
pls mark brainliest
The main features of an oligopolistic market include:
Few firms control the market High barriers to entryInterdependence of price What are oligopolistic markets like?In an oligopolistic market, you find that there are a few firms who control the market as a whole. This is because there are high barriers to entry which prevent other firms from coming in.
Because these firms in the market are few, they have interdependence in terms of price such that the price charged by one firm, is based on the price charged by the other firms.
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With regard to fiduciary duties in mortgage lending, the borrower is the _____, and the broker is the _____.
Answers
In the circular flow diagram, what do households receive from factor markets?
O income
O revenue
O goods and services
O factors of production
Answers
Answer:
the first one "income" I think
Income and goods & services are what household received from factor market
A typically circular flow diagram is used to depict the flow of income in an economy in a simple model.
A circular flow diagram contains information about the households, firms, factors of production etc
From the diagram attached below, we will observe that the household received income (wages, salaries) and goods & services from the factor market.
Therefore, in conclusion, the Correct answer is Option A and C.
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A specific dollar amount a plan will pay toward the cost of dental care over a speck period of time is a;
A- Deductible
B- Maximum
C- scheduled of benefits
D- pretermination
Answers
Answer: c
Explanation:
As a manager Mo is very caring and concerned about the feelings of his employees. It's important that his employees know that they are valued. Mo tries to have a work culture that is friendly and supportive. As a leader, Mo would score high on:
Answers
Mo wants to help the employees achieve their goals in this job ; also gains experience from this and grows from these opportunities
RESPONSIBILITY:
Mo knows it’s his job to make sure the employees feel that they can be open with him and it takes responsibility for a person to take on others stresses while somewhere where they are dealing with their own stresses too
EMOTIONAL INTELLIGENCE:
Mo knows how to make the employees feel as though he is open to them discussing their emotions and thoughts with him. Via doing this he creates a rapport with them - which is proven to effectively create self worth which leads to better work in the long run
PLS GIVE ME A BRAINLIEST IF THIS HELPS THX!
Each wholesale bag of flour is sold in 25kg bags. Using this information, calculate a new column of data of that works out how many kilograms in total were sold as retail i.e. visitor sales. in the excel sheet give me whole sale 33 and visitor 120 person also 3 type of flour white 602 Rye 207 Gluten free 204 what is the answer how I calculate the retail kg?
Answers
Answer:
I know the answer
Explanation:
Janine is conducting a marketing/sales event in a senior center cafeteria. The cafeteria generally provides a dinner meal from 5pm to 6pm. Can Janine conduct her marketing/sales meeting in the cafeteria between 5pm and 6pm?
Answers
The marketing or sales meeting should not be conducted between 5 pm and 6 pm.
Given that,
The meeting is conducted by Janine with respect to the Marketing or sales event.Generally, cafeteria gives the dinner meal between 5 Pm to 6Pm.As per the above information:
Since the dinner meal should be served between 5 Pm to 6 Pm so the meeting should not be conducted as it is the dinner time.Either she should conduct the meeting before the given time or after the given time.Therefore we can conclude that The marketing or sales meeting should not be conducted between 5 pm and 6 pm.
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