Cash inflows for any financial institution would not include: (select all that apply) Interest income from loans Proceeds from sale of bonds Fresh deposits from customers Interest paid to depositors Disbursement of fresh loans
Question
Cash inflows for any financial institution would not include: (select all that apply) Interest income from loans Proceeds from sale of bonds Fresh deposits from customers Interest paid to depositors Disbursement of fresh loans
Solution
The cash inflows for any financial institution would not include:
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Interest paid to depositors: This is considered a cash outflow because it is money that the bank is paying out to its customers.
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Disbursement of fresh loans: This is also a cash outflow because it is money that the bank is lending out to its customers.
So, the cash inflows for any financial institution would include interest income from loans, proceeds from the sale of bonds, and fresh deposits from customers. These are all ways that banks receive money, which is why they are considered cash inflows.
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