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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.

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The primary objective of financial reporting is to provide information:
inna [77]

Answer:

The correct answer is letter "B": That is useful in decision making.

Explanation:

Financial reporting is the activity every business organization engages to analyze the current situation of the company's operations to take decisions. The Financial Statements are the core instruments firms review to find out how is the firm performing and what points could be improved to maximize the revenue.

7 0
3 years ago
Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnership by making capital contributions of $75,600, $294,000, and $470,400, r
MA_775_DIABLO [31]

Answer:

salary allowances of $83,600 to Mo, $62,700 to Lu, and $94,500 to Barb; interest allowances of 10% on their initial capital investments; and the balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb.

net income $498,000, total distributions:

  • Mo = $83,600 + (20% x $257,200) = $135,040
  • Lu = $62,700 + (40% x $257,200) = $165,580
  • Barb = $94,500 + (40% x $257,200) = $197,380

First we need to close Income Summary account to each partner's capital account:

December 31, 202x

Dr income summary 498,000

    Cr Mo Meek, capital 135,040

    Cr Lu Ling, capital 165,580

    Cr Barb Beck, capital 197,380

then we close the drawings accounts to the capital accounts of each partner:

December 31, 202x

Dr Mo Meek, capital 39,300

    Cr Mo Meek, drawings 39,300

Dr Lu Ling, capital 53,300

    Cr Lu Ling, drawings 53,300

Dr Barb Beck, capital 69,300

    Cr Barb Beck, drawings 69,300

3 0
3 years ago
Farm products which are perishable and seasonal nature are supplied by
Daniel [21]

Answer:

★  Farm products which are perishable and seasonal nature are supplied by many producers.

Explanation:

Hope you have a great day :)

8 0
2 years ago
What are the differences between flexibility and compromise
marin [14]

Answer:

Flexibility mean you're more flexible about doing something. For example you could have flexible working hours which would mean you can work alot of the time like you can bend easily around when you work and compromise means you're wiling to meet in the middle so an agreement made that makes everyone happy.

5 0
2 years ago
On December 31, 2016, Bart Inc. purchased a machine from Fell Corp. in exchange for a noninterest-bearing note requiring eight p
iragen [17]

Answer:

Bart Inc.

The initial value of the machine is:

= $114,240.

Explanation:

a) Data and Calculations:

Date of purchase of machine from Fell Corp. = December 31, 2016

Annual payments for a non-interest-bearing note = $20,000

Appropriate present value of the annuity due = 5.712

PV of the annual payments for 8 years = $114,240 ($20,000 * 5.712)

First payment date = December 31, 2016

Period of payments = 8 years

Prevailing interest rate for this type of note = 11%

Check from an online financial calculator:

N (# of periods)  8

I/Y (Interest per year)  11

PMT (Periodic Payment)  20000

FV (Future Value)  0

Results

PV = $114,243.93

Sum of all periodic payments = $160,000.00

Total Interest = $45,756.07

8 0
3 years ago
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