--%>
Assignment Help - homework help

What can a financial institution do for a surplus

What can a financial institution frequently do for a surplus economic unit which it would have complexity doing for itself if the surplus economic unit (SEU) were to deal directly along with a deficit economic unit (DEU)?
Usually, Surplus economic units do not contain the expertise to find out whether deficit economic units can and will make good on their obligations, so it is hard for them to predict while a would-be deficit economic unit will not pass to pay what it owes. Such type of failure is likely to be devastating to a surplus economic unit which has lent a proportionately large amount of money.  on the contrary, a financial institution is in a better situation to predict who will pay and who won't. It is also at a better position, having greater financial resources, to sporadically absorb a loss while someone fails to pay. (It is just one example of the beneficial things financial institutions do for SEUs)

   Related Questions in Finance Basics

  • Q : What is Budget Change Proposal Budget

    Budget Change Proposal (BCP): It is a proposal to modify the level of service or funding sources for activities sanctioned by the Legislature, suggest new program activities not presently authorized, or to remove existing programs.

    Q : Describe matching principle of working

    Describe matching principle of working capital financing? Explain the benefits of following this principle? The matching principle is while short-term financing is utilized for temporary current assets while long-term financing is utilized for

    		•
  • Q : Describe the P-E valuation method

    Describe the P/E valuation method. Under what conditions a stock should be valued by using this method?The P/E ratio denotes how much investors are keen to pay for each dollar of a stock's earnings. A high P/E ratio denotes that investors belie

    		•
  • Q : Describe the fact of common

    Normal 0 false false

  • Q : Explain Budget Bill Budget Bill : The

    Budget Bill: The legislation symbolizing the Governor’s proposal for spending authorization for the subsequent fiscal year. The Budget Bill is all set by the Department of Finance and submitted to each house of the Legislature i

    		•
  • Q : What is an Investment Management

    Investment Management: It has two general definitions, one associating to advisory services and the other associated to corporate finance. In the initial instance, a financial advisor or services company gives inve

    		•
  • Q : Examples of high debt levels companies

    Give two instances of types of companies which would be best able to handle high debt levels.Companies which handle local telephone service and those which handle natural gas delivery to consumers would be assumed to comfortably be able to handl

    		•
  • Q : Portfolio Analysis And Management My

    My Assignment is writing a Three page paper including executive Summary and investing 1million Dollars in Stocks, Bonds and Mutual Funds and Other Assets and Recording Each Investments made Every Friday of the week, Beginning On September 7th to October 30 on An excel spreadsheet which has been crea

    		•
  • Q : How long do business cycles remain

    Normal 0 false false

  • Q : Global Economic Crises during 2007-2008

    Describe Global Economic Crises during 2007-2008 ?

    		•