Answer:
b) inventory is sold on credit.
Explanation:
Liquidity is defined as the a business to use its current assets to settle it's current liabilities.
This is calculated by using the working capital ratio.
Working capital ratio = Current assets ÷ Current liabilities.
Cash and inventory contribute to a business' liquidity.
When inventory is sold on credit, it does not result in immediate increase in cash as payment is in the future. So there is a reduction in the current asset of the company.
A reduction in the numerator of the working capital ratio results in lower value of the ratio (lower liquidity)
When the demand for the economy exist expanding, the demand for loanable funds will increase.
<h3>What is Demand?</h3>
The quantity of a good that consumers are willing and able to buy at various prices at a specific time period and location is known as the demand. The demand curve is another name for the relationship between price and quantity demand. Demand is just a consumer's desire to buy products and services immediately and to pay the price associated with them. Demand can be defined as the quantity of things that consumers are prepared and willing to purchase at various prices within a specific time frame.
Loanable funds are all the resources that individuals and organizations in a given economy have chosen to set aside and lend to investors rather than use for their own needs. Savings are the source of the loanable funds available. It is predicated on borrowing that loanable funds are in demand. The real interest rate and the amount of loans made depend on how the supply of savings and the demand for loans interact.
Hence, When the demand for the economy exist expanding, the demand for loanable funds will increase.
To learn more about Demand refer to:
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Answer:
Convertible bonds
Explanation:
One advantege of convertible bonds for the issuer is that bondholders are willing to accept a loxer interest rate because they have an option of converting their bonds to common stock.
If a company wants to issue bonds at an interest rate that is lower than the current market interest rate, they should offer convertible bonds.
Answer:
First option is the right choice.
Explanation:
He will not have as much money for college classes, because he will have to pay for the trailer and its maintenance.
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Answer:
b
Explanation:
extra cards and id makes it easier for people to steal (pickpocket) and get into accounts and all of the others would make it easy
