One Reason That Banks Use Derivatives Is to Generate ________,The

question 21

Short Answer

One reason that banks use derivatives is to generate ________,the money that does not come from interest earned on loans and securities.

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Definitions:

Capital Expenditures Budget

A financial plan for a company's planned investments in long-term assets and projects.

Cash Budget

A forecast of cash inflows and outflows over a specified period, used to manage cash flow and ensure liquidity.

Factory Overhead Budget

An estimation of all the costs, other than direct labor and direct materials, that are involved in manufacturing a product over a specific period.

Raw Materials Purchases

The acquisition of the basic materials and components required for the production of goods.