A Bank Has Determined That Its Marginal Cost of Raising

question 134

Multiple Choice

A bank has determined that its marginal cost of raising funds is 4.5 percent and that its nonfunds costs to the bank are 0.5 percent.It has also determined that its margin to compensate the bank for default risk for a particular customer is 0.30 percent.It has also determined that it wants to have a profit margin of 0.3 percent.If this customer wants to borrow $10,000,000,how much in total interest costs will this customer pay in one year?

• A)$450,000
• B)$480,000
• C)$510,000
• D)$560,000
• E)None of the options is correct.

Differentiate between the physical properties of different soil types (clay, sand, silt, loam) and their impact on the environment.

Identify the major components and roles of carbon and organic compounds in ecological systems.

Determine how biogeochemical cycles (hydrologic, carbon, nitrogen, and phosphorus) interlink and affect ecological balance.

Recognize sources and reservoirs of major nutrients and gases in the ecosystem.

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Definitions:

Organizational Power

The ability of individuals or groups in an organization to influence decisions, control resources, and direct the actions of others.

Personal Power

The influence or authority a person has over others, derived from their skills, qualities, or personal attributes, rather than their position or title.

Legitimate Power

The authority that a person holds as a result of their position or role within an organization.

Sanctioned Authority

Authorized power or approval, often by a governing body or law, legitimizing someone or something to perform certain actions.