Final answer:
The transaction most suitable for real-time processing is recording a sale on account. Money on a bank's balance sheet may not be present due to the fractional reserve system, and the purchase price of loans in the secondary market varies based on payment history and economic interest rates.
Step-by-step explanation:
The type of transaction most suitable for real-time processing is recording a sale on account. Real-time processing is essential in situations where the immediate capture and update of transactions is critical. Recording a sale on account is such a case because it involves updating the company's financial records and inventory systems as soon as the sale occurs to ensure accurate financial reporting and stock levels.
Regarding the assets on a bank's balance sheet, the money listed may not be physically present in the bank because banks operate on a fractional reserve basis. Instead of holding all deposits in vaults, they use a portion to make loans and purchase assets like government bonds. Bonds are an asset for banks because they provide a stream of payments over time, similar to how loans generate interest income.
When buying loans in the secondary market, an investor may pay more or less for a loan depending on several factors:
- If the borrower has been late on loan payments, the loan may be deemed riskier, resulting in a lower price.
- If interest rates rise, existing loans with lower rates become less attractive, implying a lower price.
- A borrower declaring high profits may suggest better repayment capability, potentially raising the loan's price.
- When interest rates fall, loans with higher fixed rates become more valuable, leading to a higher price.