2015 when one deposits money into their bank account

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of their own funds since in the recent years they have taken on more risk (Thangavelu, P., 2015). When one deposits money into their bank account they get paid interest on their funds, then the bank turns uses that money to lend out the money to those who pay a higher interest. Although, the bank is benefiting since they make money on the difference of interest that is paid out on one’s funds and between the interest they make from charging those who borrow money at a higher interest rate. With the banks doing this, the bank’s are seen as a financial intermediary between a banking customer who deposit their money and the investors that need the money (Thangavelu, P., 2015). An article by Liñán, E. C. gave a deeper understanding on how to understand how to read banks financial statements. A bank’s balance sheet is a variation of their volume of lending, the banks assets, financing on the liabilities side, and comparing customers deposits. Total assets and the sum of equity and liabilities on a bank’s balance sheet make up a vast majority of a retail banks balance sheet. The banks balance sheet can conclude the banks finance lending and an increase or decrease in bank activity. The banks income statement is also another source which can represent a banks activity since it shows the financial margin (as well as the net interest margin). The margin is obtained by the activity from using funds from spending which are capable of financing loans to those who are in need of financing. This value is equal to the difference between the products and financial costs, and strategy to be able to obtain a lower cost for others money with high interest funds which are lent to third parties (Liñán, E. C., 2018).
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Module 3: Creating Financial Statements 5 Insurance companies are much different than a bank as to the risk that is taken and what services that they provide their customers. An insurance company insures their customers again certain risks such as a car accident risk, or the risk that their house may catch on fire. The
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  • Fall '17
  • Balance Sheet, Generally Accepted Accounting Principles, statements of an insurance company

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