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In the deposit function, banks treat interest as income.
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- How does getting a secured loan using accounts receivableas collateral differ from factoring?is purchashing something on credit an operating activity or a financial activityWhich of the following is not a Money Market Instrument? a. Commercial Paper b. Debentures c. Treasury Bill d. Certificate of Deposit
- Why is interest paid on amounts borrowed from banks and other lenders considered to be anoperating activity while the amounts borrowed are financing activities?In the case of a loan, the bank is the debtor and the customer is the creditor. Select one: i. True ii. FalseHow much debt should be incurred/settled to satisfy the banks condition?
- What is a bank discount? How does it differ to simple interest? State the bank discount formulaWhich of the following are the instruments of money market? Select one a Certificate of deposits b. All of the above c. Trade bills d. Call money e.NoneIn the deposit function, the bank is the _____ and the depositors are the ______ a. drawee - payees b. debtor - creditors c. payee - drawers d. creditor - debtors