When borrowing from private lenders, how should one handle the cost of the underwriting?

When borrowing from private lenders, how should one handle the cost of the underwriting?
by

1 Answer

Answer :

One way or the other the borrower pays.
by

Related questions

The decline in the combined ratio is most likely to indicate that the insurer has ___________. a) increased its administration expenses b) increased its long term borrowing c) improved its investment returns d) improved its underwriting results

Description : The decline in the combined ratio is most likely to indicate that the insurer has ___________. a) increased its administration expenses b) increased its long term borrowing c) improved its investment returns d) improved its underwriting results

Last Answer : d) improved its underwriting results

“The rich households are availing cheap credit from formal lenders whereas the poor house holds have to pay a heavy price for borrowing.” -SST 10th

Description : “The rich households are availing cheap credit from formal lenders whereas the poor house holds have to pay a heavy price for borrowing.” -SST 10th

Last Answer : . The formal sector still meets only about half of the total credit needs of the rural people. . The remaining credit needs are met from informal sources. . Most loans from informal lenders ... the rich households who receive formal credit whereas the poor have to depend on the informal sources.

Where do we get private lenders who will lend to real estate investors?

Description : Where do we get private lenders who will lend to real estate investors?

Last Answer : Many private lenders will come through referrals within your own real estate network. Second, it is a good idea to build your contact list from people outside of the real estate industry. This ... colleagues, and anyone who is not currently an investor but might be looking for new opportunities.

If he Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should - (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above

Description : If he Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should - (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above

Last Answer : (1) lower cash reserve ratio Explanation: When the Central Bank of a country intends to increase money supply, it should lower the Cash Reserve Ratio. A decrease in CRR helps the commercial banks to ... the amount of Bank deposits and they will lend more as they have more amount as their reserve.

The cost of borrowing is equal to marginal propensity to consume. 21. Investment is (a) An injection that increases aggregate demand (b) An withdrawal that increases aggregate demand © An injection that decreases aggregate demand (d) An withdrawal that decreases aggregate demand

Description : The cost of borrowing is equal to marginal propensity to consume. 21. Investment is (a) An injection that increases aggregate demand (b) An withdrawal that increases aggregate demand © An injection that decreases aggregate demand (d) An withdrawal that decreases aggregate demand

Last Answer : a) An injection that increases aggregate demand

A profit maximizing firm will invest up to the level of investment where (a) The cost of borrowing equals marginal efficiency of capital (b) The cost of borrowing is greater than marginal efficiency of capital © The cost of borrowing is less than marginal efficiency of capital (d) The cost of borrowing is equal to marginal propensity to consume.

Description : A profit maximizing firm will invest up to the level of investment where (a) The cost of borrowing equals marginal efficiency of capital (b) The cost of borrowing is greater than marginal ... marginal efficiency of capital (d) The cost of borrowing is equal to marginal propensity to consume.

Last Answer : (a) The cost of borrowing equals marginal efficiency of capital

Lower interest rates are likely to (a) Decrease consumption. (b) Increase cost of borrowing. © Encourage saving. (d) Increase borrowing and spending.

Description : Lower interest rates are likely to (a) Decrease consumption. (b) Increase cost of borrowing. © Encourage saving. (d) Increase borrowing and spending.

Last Answer : (d) Increase borrowing and spending.

If the Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above

Description : If the Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above

Last Answer :  lower cash reserve ratio

Which type of foreign investment is considered as unsafe? (1) Foreign Direct Investment (FDI) (2) Portfolio Investment (3) NRI deposits (4) External commercial borrowing

Description : Which type of foreign investment is considered as unsafe? (1) Foreign Direct Investment (FDI) (2) Portfolio Investment (3) NRI deposits (4) External commercial borrowing

Last Answer : (2) Portfolio Investment Explanation: Portfolio Investments are considered unsafe. These are investments in the form of a group (portfolio) of assets, including transactions in equity securities, such as ... which allows an investor to exercise a certain degree of managerial control over a company.

Longterm funds in the capital, market can be raised either by borrowing from certain institutions or through - (1) issue of note (2) taking loan from Government (3) issue of securities (4) taking loan from foreign institutions

Description : Longterm funds in the capital, market can be raised either by borrowing from certain institutions or through - (1) issue of note (2) taking loan from Government (3) issue of securities (4) taking loan from foreign institutions

Last Answer : (3) issue of securities Explanation: Capital markets provide for the buying and selling of long term debt or equity backed securities. When they work well, the capital markets channel the wealth of ... to raise long-term funds by providing a market for securities, both through debt and equity.

Savings rate is relatively low in developed economies because of - (1) Low per capita income (2) Welfare programmes (3) Liquidity/ Borrowing constraint (4) High interest rate

Description : Savings rate is relatively low in developed economies because of - (1) Low per capita income (2) Welfare programmes (3) Liquidity/ Borrowing constraint (4) High interest rate

Last Answer : (2) Welfare programmes Explanation: As a general rule, saving is considered as a derivative of consumption. Developed economies have lower saving rates than developing countries because ... generations raises national consumption and lowers national saving (The Concise Encyclopedia of Economics).

The main source of long-term credit for a business unit is - (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions

Description : The main source of long-term credit for a business unit is - (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions

Last Answer : (1) sale of stocks and bonds to the public Explanation: Companies issue securities called stocks and bonds to raise necessary capital which funds the company's daily operations and growth. ... issuing stock to owners called stockholders doesn't require the company's repayment of investor principal.

The RBI can decrease the money supply in the market by: a) selling government securities b) buying government securities c) borrowing money from commercial banks d) none of the above

Description : The RBI can decrease the money supply in the market by: a) selling government securities b) buying government securities c) borrowing money from commercial banks d) none of the above

Last Answer : a) selling government securities

The RBI can increase the money supply in the market by: a) selling government securitiesb) buying government securitiesc) borrowing money from commercial banksd) none of the above

Description : The RBI can increase the money supply in the market by: a) selling government securities b) buying government securities c) borrowing money from commercial banks d) none of the above

Last Answer : b) buying government securities

Which type of foreign investment is considered as unsafe? (1) Foreign Direct Investment (FDI) (2) Portfolio Investment (3) NRI deposits (4) External commercial borrowing

Description : Which type of foreign investment is considered as unsafe? (1) Foreign Direct Investment (FDI) (2) Portfolio Investment (3) NRI deposits (4) External commercial borrowing 

Last Answer : Portfolio Investment

Long-term funds in the capital market can be raised either by borrowing from certain institutions or through (1) issue of note (2) taking loan from Government (3) issue of securities (4) taking loan from foreign institutions

Description : Long-term funds in the capital market can be raised either by borrowing from certain institutions or through (1) issue of note (2) taking loan from Government (3) issue of securities (4) taking loan from foreign institutions

Last Answer :  issue of securities

The main source of long-term credit for a business unit is (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions

Description : The main source of long-term credit for a business unit is (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions

Last Answer : sale of stocks and bonds to the public

Savings rate is relatively low in developed economies because of (1) Low per capita income (2) Welfare programmes (3) Liquidity/Borrowing constraint (4) High interest rate

Description : Savings rate is relatively low in developed economies because of (1) Low per capita income (2) Welfare programmes (3) Liquidity/Borrowing constraint (4) High interest rate

Last Answer : Welfare programmes

What is meant by 'Underwriting', the term frequently used in financial sector? -General Knowledge

Description : What is meant by 'Underwriting', the term frequently used in financial sector? -General Knowledge

Last Answer : The answer is 'Undervaluation of the assets.'

What is meant by ‘Underwriting’, the term frequently used in financial sector? -General Knowledge

Description : What is meant by ‘Underwriting’, the term frequently used in financial sector? -General Knowledge

Last Answer : answer:

What is meant by ‘Underwriting’, the term frequently used in financial sector? -General Knowledge

Description : What is meant by ‘Underwriting’, the term frequently used in financial sector? -General Knowledge

Last Answer : answer:

The maximum rate of underwriting commission on debentures is– (A) 10% (B) 2•5% (C) 12•5% (D) 5%

Description : The maximum rate of underwriting commission on debentures is– (A) 10% (B) 2•5% (C) 12•5% (D) 5%

Last Answer : Answer: 2•5%

What is meant by ‘Underwriting’, the term frequently used in financial sector?

Description : What is meant by ‘Underwriting’, the term frequently used in financial sector?

Last Answer : Under valuation of the assets.

Underwriting in terms of shares means 1. Agreeing to purchase shortfall of shares in a company in case of undersubscription 2. Selling shares at a discount 3. Purchasing property at less than market price 4. a and b 5. None of these

Description : Underwriting in terms of shares means 1. Agreeing to purchase shortfall of shares in a company in case of undersubscription 2. Selling shares at a discount 3. Purchasing property at less than market price 4. a and b 5. None of these

Last Answer : Agreeing to purchase shortfall of shares in a company in case of undersubscription

The underwriting commission is payable in cash alone.

Description : The underwriting commission is payable in cash alone.

Last Answer : FALSE

The percentage of underwriting commission on shares applied to by public is same as allotted shares devolved on underwriters.

Description : The percentage of underwriting commission on shares applied to by public is same as allotted shares devolved on underwriters.

Last Answer : FALSE

r A/c is debited . 2. The underwriting commission is payable in cash . 3.

Description : 2. The underwriting commission is payable in cash .

Last Answer : FALSE

The underwriting commission is payable in cash .

Description : The underwriting commission is payable in cash .

Last Answer : FALSE

When the underwriting commission becomes payable , the underwriter A/c is debited

Description : When the underwriting commission becomes payable , the underwriter A/c is debited

Last Answer : FALSE

Which of the following is the act of taking a risk for a fee? e) Guidewire f) Initial Public Offering g) Predictive analytics h) Underwriting

Description : Which of the following is the act of taking a risk for a fee? e) Guidewire f) Initial Public Offering g) Predictive analytics h) Underwriting

Last Answer : h) Underwriting

_____is referred as both fund based and fee based financial service.(a) Higher purchase b) underwriting c) Factoring)

Description : _____is referred as both fund based and fee based financial service.(a) Higher purchase b) underwriting c) Factoring)

Last Answer : b) underwriting

_______ is the process of updating the accounts of the trading parties. a. Underwriting b. Clearing c. Banking

Description : _______ is the process of updating the accounts of the trading parties. a. Underwriting b. Clearing c. Banking

Last Answer : b. Clearing

SIPCOT's financial assistance is in the form of __________. A. term loan. B. seed capital scheme. C. underwriting the capital issues. D. All of the above.

Description : SIPCOT's financial assistance is in the form of __________. A. term loan. B. seed capital scheme. C. underwriting the capital issues. D. All of the above.

Last Answer : D. All of the above.

Should lenders be allowed to make loans they don't expect borrowers to be able to repay?

Description : Should lenders be allowed to make loans they don't expect borrowers to be able to repay?

Last Answer : answer:No, they should not. It is greed on their parts. Should people think responsibly and not take on more debt than they can? Of course. In the case of some of these outrageous mortgages, ... simplifying the process and forcing them to disclose in plain English would go a long way to helping.

What is collateral ? Why do lenders ask for collateral while lending ? Explain. -SST 10th

Description : What is collateral ? Why do lenders ask for collateral while lending ? Explain. -SST 10th

Last Answer : Collateral is an asset owned by the borrower like land, building etc, and is used as a guarantee to the lender till the loan is repaid. Lenders ask for collateral because: 1. It serves as a ... . 2. In case of failure of repayment of the loan, the lender can take the collateral as compensation.

How do the informal lenders take undue advantage of the borrowers helplessness? -SST 10th

Description : How do the informal lenders take undue advantage of the borrowers helplessness? -SST 10th

Last Answer : They charge high interest on loans. As a result, the cost to the borrower of informal loans is also very high.

Why do lenders ask for collateral while lending ? -SST 10th

Description : Why do lenders ask for collateral while lending ? -SST 10th

Last Answer : Lenders ask for collateral as security against loans. If the borrower fails to repay the loan, the lender has the right to sell the asset-or collateral to recover the payment. Collateral assets ... defaults on repayment of loan. It is for this reason that lenders ask for collateral while lending.

What Amount of money owed by a country to its lenders?

Description : What Amount of money owed by a country to its lenders?

Last Answer : Need answer

Why do lenders ask for collateral while lending?

Description : Why do lenders ask for collateral while lending?

Last Answer : Feel Free to Answer

All About Hard Money Lenders?

Description : All About Hard Money Lenders?

Last Answer : Hard money lenders make loans of money with real estate used ascollateral. The amount of the money lent is usually about 60-70 percent of the value of the property, or what it could ... Some states have usury laws that apply toindividual loans but not to commercial loans. Consumers also haveregula

Are Fannie Mae and Freddie Mac FHA lenders?

Description : Are Fannie Mae and Freddie Mac FHA lenders?

Last Answer : No Fannie Mae and Freddie Mac are not FHA lenders. FHA loans are guaranteed loans and the others are not. FHA loans also have different guidelines and qualification tools.

Do You Have To Receive An Amortization Schedule From Lenders?

Description : Do You Have To Receive An Amortization Schedule From Lenders?

Last Answer : An amortization schedule is a document that lays out how much money you are expected to pay each month on a loan. It will tell you how much interest you are paying, how much of your payment is going ... to rely on their lenders to be honest and upfront about the loan that they have just taken out.

Do lenders provide amortization schedules for free?

Description : Do lenders provide amortization schedules for free?

Last Answer : Bankrate.com offers the best free, fast, and confidential amortization schedules online for use by their users. Sign up for free at bankrate.com and you will instantly be able to use bankrate's intuitive features.

Who are the top commercial mortgage lenders?

Description : Who are the top commercial mortgage lenders?

Last Answer : Congratulations to your Aunt for purchasing her first business. Some of the better commercial mortgage lenders are State Farm Bank, Wells Fargo, and Visa.

Which commercial mortgage lenders charge the lowest mortgage points?

Description : Which commercial mortgage lenders charge the lowest mortgage points?

Last Answer : You will have to shop around in order to get the best rate on a mortgage. Different companies will offer you different rates based on several other factors.

Debt financing is a cheaper source of finance because of A. Time value of Money B. Rate of Interest C. Tax deductibility of Interest D. Dividends not payable to lenders.

Description : Debt financing is a cheaper source of finance because of A. Time value of Money B. Rate of Interest C. Tax deductibility of Interest D. Dividends not payable to lenders.

Last Answer : C. Tax deductibility of Interest

The importance of ‘Trading on Equity’ lies in the fact that if the company is earning more profit, it can make use of borrowed capital and preference share capital and by doing so, it can increase the income of: a. Preference Shareholders b. Lenders c. Equity Shareholders d. Government

Description : The importance of ‘Trading on Equity’ lies in the fact that if the company is earning more profit, it can make use of borrowed capital and preference share capital and by doing so, it can increase the income of: a. Preference Shareholders b. Lenders c. Equity Shareholders d. Government

Last Answer : c. Equity Shareholders

Which of the below-mentioned institutes are linked with the financial sector of India controlled by the Reserve Bank of India (RBI)? a) Commercial Bank b) Money Lenders c) Stock Exchange Operations d) All the above

Description : Which of the below-mentioned institutes are linked with the financial sector of India controlled by the Reserve Bank of India (RBI)? a) Commercial Bank b) Money Lenders c) Stock Exchange Operations d) All the above

Last Answer : Answer- c

What does higher cost of borrowing means? -SST 10th

Description : What does higher cost of borrowing means? -SST 10th

Last Answer : This means a large part of the earnings of the borrowers is used to repay the loan. Hence, borrowers have less income left for themselves.

Air-tech management learns that last month's production run of heaters is defective and announces a recall of the specific models produced. To handle the large number of products it expects to receive for replacement, Air -tech will probably need to add a __________ to its distribution network. A)distribution centre B)private warehouse C)dispatching shipment system D)public warehouse E)materials handling system

Description : Air-tech management learns that last month's production run of heaters is defective and announces a recall of the specific models produced. To handle the large number of products ... distribution centre B)private warehouse C)dispatching shipment system D)public warehouse E)materials handling system

Last Answer : D)public warehouse