1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
shtirl [24]
3 years ago
14

How does the loanable funds market translate savings into investment and what adjusts to bring the market to equilibrium? A. The

savings provide the supply of loanable funds, while investment is the demand for loanable funds. While financial markets provide a means of transferring savings into investment, it is the inflation rate that changes to bring the market into equilibrium. B. The investments provide the supply of loanable funds, while saving is the demand for loanable funds. While financial markets provide a means of transferring savings into investment, it is the inflation rate that changes to bring the market into equilibrium C. The savings provide the supply of loanable funds, while investment is the demand for loanable funds. While financial markets provide a means of transferring savings into investment, it is the interest rate that changes to bring the market into equilibrium D. The investments provide the supply of loanable funds, while saving is the demand for loanable funds. While financial markets provide a means of transferring savings into investment, it is the interest rate that changes to bring the market into equilibrium.
Business
1 answer:
erma4kov [3.2K]3 years ago
3 0

Answer:The answer is C

Explanation:

The financial market is a market where short term and long term loan can be obtained, it comprises of the money market and the capital market. The money market provides short term finance to lenders which lenders can use for up to two years before repayment. The money market consist of the commercial banks, Discount houses, merchant banks, finance companies. While the capital market provides long term loans to lenders which lenders can then use for more than two years before repayment. The capital market consist of issuing houses,insurance companies, mortgage bank,the stock exchange.

The simple market for loan able funds is made up of the surplus economic unit which comprises of the savers of funds,the investors as well as the purchaser or buyers of financial claims( assets) while the deficit economic unit is made up of issuers of financial claim and borrowers. This simple market for loan able funds works through process by which the participants in the market mobilized fund from the surplus economic unit to the deficit economic unit for the purpose of investment in the economy. When a borrower needed funds such borrowers will approach a financial institutions to borrow, the financial institutions will lend the money to the borrower from the savings made by the depositors into their account and the financial institutions will charge an interest rate on the loan lend out to the borrowers. The borrowers will then use the loan to invest in the economy.

You might be interested in
Using MACRS rates for a three-, five-, seven-, and ten-year property, what is the percentage for the depreciable rate?
Alexxandr [17]
Hi there
The answer is a
See the attachment for more details

5 0
3 years ago
The components of global market assessment include all of the following except:______. a. ethnic analysis. b. infrastructure and
snow_lady [41]

Answer:

a. ethnic analysis

Explanation:

  • There are four components of the global marketing analysis that includes the global market assessment and economic analysis and social-cultural analysis along with the infrastructural and the technical analysis.
  • Also an analysis of the government actions. Except for the ethical analysis of the company. As it's concerned with the assessment of the marketing conditions.
4 0
3 years ago
Brief Exercise 24-2 Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $216,758, n
Tanzania [10]

Answer:

Net Present Value = $12,400

Since net present value is positive, the investment shall be made.

Explanation:

Capital outlay = $216,758

Cash inflow every year = $43,900

Period = 10 Years

Net Present Value = Present value of cash inflow - Present value of cash outflow

Present Value of Cash Inflow = Cash inflow each year X Present value factor of cash inflows for years

= $43,900 X 5.22

= $229,158

Present value of cash outflow = $216,758

Net Present Value = $229,158 - $216,758 = $12,400

Since net present value is positive, the investment shall be made.

Net Present Value measures the net effect of an investment discounted at current rate of interest, i.e. cost of capital.

Final Answer

Net Present Value = $12,400

Since net present value is positive, the investment shall be made.

3 0
3 years ago
The Delphi technique is a useful way to gather opinions from experts who
netineya [11]

Answer:

The answer is option B) The Delphi technique is a useful way to gather opinions from experts who desire anonymity.

Explanation:

The Delphi method seeks to collate opinions from a diverse set of experts, and it can be done without having to bring everyone together for a physical meeting.

Since the responses of the participants are anonymous, individual panelists don't have to worry about the consequences of their opinions.

Consensus takes time since opinions are carefully analyzed, making the method very effective.

It is an exclusive process used to arrive at a group opinion or decision by surveying a panel of experts.

Experts respond to several rounds of questionnaires, and the responses are aggregated and shared with the group after each round.

The experts can adjust their answer each round, based on how they interpret the group response provided to them to assess.

The ultimate result is meant to be a true consensus of what the group thinks whilst retaining the anonymity of the respondents.

5 0
3 years ago
Read 2 more answers
Ruth executes a will in 2012 naming her nephew stan as sole beneficiary. in 2014, ruth executes another will, naming her niece t
Slav-nsk [51]

Stan and Tammy will share the estate in equal shares. You are able to have as many beneficiaries as you name, due to this and no change in the first will, both will be heirs to the estate. If Ruth were to have revoked the first will, then it would have left Tammy the sole beneficiary.

5 0
3 years ago
Other questions:
  • Which detail is most likely to give consumers a false sense of security about using Edgozene?
    8·2 answers
  • The Allowance for Doubtful Accounts: Multiple Choice Is credited when bad debts expense is estimated and recorded. All of the op
    11·1 answer
  • When a firm plans to issue bonds, it creates a(n) ______, which is a legal document that explains its obligations to bondholders
    5·1 answer
  • Patsy possesses twenty-four acres of remote, rugged land. Patsy has the right to use the property, including extracting silver f
    6·1 answer
  • According to the text, minimum-wage laws cause increases in:_________.
    7·1 answer
  • A team's attempt to list, on individual sticky notes, all of the possible threats and opportunities that could occur to an upcom
    9·1 answer
  • Government can reallocate resources away from private goods toward public goods, usually through Multiple Choice import tariffs
    12·1 answer
  • Third World Gamer Inc. manufactures components for computer games within a relevant range of 500,000 to 1,000,000 disks per year
    5·1 answer
  • Steve's Outdoor Company purchased a new delivery van on January 1 for $47,000 plus $4,000 in sales tax. The company paid $13,000
    5·1 answer
  • The saving component of financial planning focuses on long-term security and includes:
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!