--%>
Assignment Help - homework help

Why banks make short-term or self-liquidating loans

Banks desire to make short-term, self-liquidating loans to businesses. Why?

Banks desire to be able to illustrate where the funds are likely to come from such that the borrower is capable to employ to make the required loan payments. Short term, self-liquidating loans do this as the borrowed funds are utilized to purchase assets that produce the needed funds.

 

   Related Questions in Finance Basics

  • Q : Price The Audiology Department at

    The Audiology Department at Randall Clinic offers many services to the clinic’s patients. The three most common , along with cost and utilization data, are as follows: Service Variable cost per service Annual Direct Fixed cost Annual Number of Visits Basic Examination $5. $50,000 3,000 Advanced

    		•
  • Q : Describe EU Normal 0 false false false

    Normal 0 false false

  • Q : Define the term Unappropriated Surplus

    Define the term Unappropriated Surplus: It is an outdated term for that part of the fund balance not reserved for particular purposes.

    		•
  • Q : Describe patterns of cash flows for

    Describe two patterns of cash flows for a share of common stock. How does the market find out the value of the most common cash flow pattern for common stock?Cash flows for share of common stock contain dividend payments and the price attained f

    		•
  • Q : Biometrics in banking operations

    Biometrics is one kind of technology that can be used to control these kinds of fraudulent practices. May be it is the system which cannot completely stop the practices but yes at least it is the way which can reduce it to the barest minimum. The conv

    		•
  • Q : What are A-pages A-pages : An ordinary

    A-pages: An ordinary reference to the Governor's Budget synopsis. The Budget highlights now contained in the Governor's Budget synopsis were just once contained in front of the Governor's Budget on pages A-1, A-2, and so on, and were,

    		•
  • Q : Four major phases of the business cycle

    Normal 0 false false

    		•
  • Q : Describe Schedule 10 Schedule 10 :

    Schedule 10: (Supplementary Schedule of Appropriations): The Department of Finance control document listing all the appropriations and allocations of funds accessible for expenditure throughout the past, present, and budget years. Such documents are s

    		•
  • Q : Define Allotment Allotment : The

    Allotment: The permitted division of an amount (generally of an appropriation) to be expended for a specific purpose throughout a particular time period. An allotment is usually authorized on line item expenditure basis by program or

    		•
  • Q : Influence of working capital in the

    How and why does working capital influence the incremental cash flow estimation for a proposed large capital budgeting project? Describe. Several large projects need additional working capital. This investment in additional working capital bec

    		•