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3 years ago

According to liquidity preference theory, equilibrium in the money market is achieved by adjustments in

Business

1 answer:

sashaice [31]3 years ago

4 0

Answer:The correct option is 'd': The interest rate.

Explanation:

According to Liquidity preference theory money is considered as 'liquid' meaning that liquidity preference is the demand for money.

According to this theory if our investments are more liquid then we ought to cash in for full value as cash is often accepted as most liquid asset.

Thus the liquidity of cash can be controlled by adjusting the interest rates as equilibrium in the money markets is achieved when the demand equals the supply.

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Nadia could not withdraw money from her checking account, even though it had been several weeks since she deposited a check. Wha

seraphim [82]

The last one is definitely not the answer. I am also trying to figure this out but I know for a fact the last one isin't, I think it is the 3rd option! i looked up the defenitions of the others and the one that seems right is the 3rd. Goodluck!

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3 years ago

Read 2 more answers

Sound Company reported the following amounts for May, 2008: Direct materials purchased $254,000 Beginning raw materials inventor

Yakvenalex [24]

Answer:

$254,100

Explanation:

The computation of the cost of direct materials used in production is shown below:

= Direct materials purchased + Beginning raw materials inventory - Ending raw materials inventory - Indirect materials requisitioned and used

= $254,000 + $12,000 - $7,900 - $4,000

= $254,100

Hence, all the other information is not considered. Therefore, ignored it

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3 years ago

Harriet Marcus is concerned about the financing of a home. She saw a small cottage that sells for $39,000. Assuming that she put

Leokris [45]

Incomplete question. Here's the remaining part that completes question;

(Use the Table 15.1(a) and Table 15.1(b)). (Round intermediate calculations and your final answers to the nearest cent.)

Monthly payment

a. 25 Years, 10.5%

b. 25 Years, 11.5%

c. 25 Years, 12.5%

d. 25 Years, 14.0%

Answer:

Monthly payment is $104 for each assumption

Total interest cost

a. $3,276

b. $3,588

c. $3,900

d. $4,368

Explanation:

Total balance left = $39,000-$7800 (20% of Cost of cottage)=$31,200

a) For monthly payment

$31,200/300 months (equivalent For 25 years) = $104

Total cost of Interest= monthly Interest% x monthly payment x 300 months= 10.5% x $104 x 300 months = $3,276.

b) For monthly payment

$31,200/300 months (equivalent For 25 years) = $104

Total cost of Interest= monthly Interest% x monthly payment x 300 months= 11.5% x $104 x 300 months = $3,588.

c) For monthly payment

$31,200/300 months (equivalent For 25 years) = $104

Total cost of Interest= monthly Interest% x monthly payment x 300 months= 12.5% x $104 x 300 months = $3,900.

d) For monthly payment

$31,200/300 months (equivalent For 25 years) = $104

Total cost of Interest= monthly Interest% x monthly payment x 300 months= 14% x $104 x 300 months = $4,368.

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4 years ago

What can you say about entrepreneur?

zalisa [80]

An entrepreneur is a person who starts a business and is willing to risk loss in order to make money” or “one who organizes, manages, and assumes the risks of a business or enterprise.”

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3 years ago

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All of the following statements regarding leases are true except : A. For a capital lease the lessee records the leased item as

faust18 [17]

Answer: B. Capital leases do not transfer ownership of the asset under the lease, but operating leases often do.

Explanation:

When using Capital Leases, the lessee will record the lease as if it were their own asset and as a result will also depreciate it. The lessee will also create a long term liability on their balance sheet for the asset.

Capital leases usually also involve a transfer of ownership to the lessee at the end of the lease term. Operating Leases on the other hand do not have these features. They are more like a rental of an asset and as such are recorded as a rental expense in the books of the lessee. The ownership remains with the lessor in an Operating Lease and the asset will be returned once the lease period is over.

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3 years ago