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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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A PHLX Jan 80 Swiss Franc Call contract is quoted at 2 when the Swiss Franc closes at 77. The contract is:_______
Ulleksa [173]

Answer:

Out the money.

Explanation:

A PHLX Jan 80 Swiss Franc Call contract is quoted at 2 when the Swiss Franc closes at 77. The contract is out the money.

An out the money ultimately implies that an option only has an extrinsic value but no intrinsic value. The extrinsic value of an option refers to the difference between its intrinsic value and the market value (premium). An extrinsic value is affected by the volatility in the market and its time value. The intrinsic value of an asset refers to the calculated, true or real value of an asset and is solely affected by internal factors.

A call is out the money when the strike price is greater than or above the underlying price of an asset. This simply means that, it's market value (price) has fallen below its strike price.

<em>In this scenario, the market price of the call is 77 while its strike price is 80; thus, the call option is out the money by 3.</em>

5 0
3 years ago
Check my work Check My Work button is now disabledItem 6Item 6 10 points Suppose the supply curve of portable radio rentals in G
GaryK [48]

Answer:

900 or 9 hundred

Explanation:

Given that :

the supply curve = P = 5 + 0.1Q

the Demand curve = P = 20 – 0.2Q

The relation of both above yields the equilibrium price and quantity .

SO;

5 + 0.1Q =  20 – 0.2Q

5 - 20 = -0.2Q - 0.1Q

-15 = -0.3Q

Q = -15/-0.3

Q = 50 hundreds of unit per day

Q = 5000 per day

So;

P = 5 + 0.1Q

P = 5 + 0.1 (50)

P = 5  + 5

P = $10

Therefore; the equilibrium price is $10

the equilibrium quantity is 5000

Similarly; the portable radio imposes $2.70 per day in noise costs on others.

∴ in order to deduce the social marginal cost curve ,w e need to shift the private marginal cost curve up by $2.70  for every unit.

Now; the social marginal cost curve will be ;

P = (5 + 2.7) + 0.1Q

P = 7.7 + 0.1Q

In order to determine the  social optimum ; we relate the  social marginal cost with demand curve as follows:

7.7 + 0.1Q =  20 - 0.2Q

0.1Q + 0.2Q = 20 - 7.7

0.3Q = 12.3

Q = 12.3/0.3

Q = 41 hundred unit per day

Q = 4100 per day

Recall :

P = 7.7 + 0.1Q

P = 7.7 + 0.1(41)

P = 7.7 + 4.1

P = $11.8

Finally; the equilibrium  number of portable radios rented is 5000 - 4100 = 900 or 9 hundred

6 0
3 years ago
Rogers Company reported net income of $44,417 for the year. During the year, accounts receivable increased by $5,230, accounts p
damaskus [11]

Answer:

c. $44,417

Explanation:

The computation of the  Net cash provided by operating activities for the year is shown below

Cash flow from operating activities

Net income $44,417

Less Increase in account receivable -$5,230

Less Decrease in account receivable -$3,590

Add depreciation expense $48,113

Net cash provided by operating activities $83,710

hence, the correct option is c.

6 0
3 years ago
in fighting ambushing marketing, who should be responsible, the host venue or organizer or the sponsoring brands?
snow_tiger [21]

During the most recent soccer tournament made headlines. This note defines ambush marketing, details how businesses can breaking ambush marketing regulations developing marketing strategies.

Ambush advertising occurs when an organization that isn't a political tournament candidate sponsors an event (like a sporting competition or music ambush marketing festival) and engages in promotional activities in an effort to establish an association with the event or to take advantage of the event's profile without the owner's consent.

For instance, if a retailer of consumer goods on the high street published an advertisement for "World Cup WAG handbags" or "Olympic Special ambush marketing Offer: two for one sports gear," readers might assume that the company has some connection to the world Cup or the Olympics.

Because they must protect the value of their own commercial rights in tournament the event and because they may have chosen official sponsors (possibly direct competitors of the advertiser) who have paid significant sums for the exclusive rights to be formally associated with the event, event owners frequently respond angrily to ambush advertising.

Learn more about  ambush marketing here

brainly.com/question/6085307

#SPJ4

7 0
1 year ago
Two positions have normally been taken with respect to the recording of fixed manufacturing overhead as an element of the cost o
SpyIntel [72]

Answer:

Recording fixed manufacturing overhead as element of the cost of plant assets constructed by a company for its own use:

a) When to exclude completely: During periods of low production activity, capitalization of fixed overhead costs would reduce the amount assigned to operational activities.  This implies that profits will be overstated in some periods and understated in others.

b) When to include at the same rate as is charged to normal operations:  To avoid misstatement of both plant assets and finished goods, it is important to allocate overhead costs at the same rate to plant asset construction as is done for normal operations.

Explanation:

Much of the fixed manufacturing overhead will be the depreciation costs for factory building and equipment.  Sometimes, companies construct their plant assets internally.  The problem arises when deciding whether to allocate fixed manufacturing overhead costs or not and  when to allocate.  The decision requires some thinking to decide when it is appropriate.

4 0
3 years ago
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