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3 years ago

What role does savings play in the process of economic growth

Business

1 answer:

matrenka [14]3 years ago

6 0

Answer:

The role played by banks in the economic growth is that savings promote the generation of loans, and generate funds to new businesses.

Explanation:

Banks use the funds on the savings accounts to generate credits to other clients that might be persons or companies.

Suppose that you have $1000 dollars saved in your bank account. Then, your bank only needs to keep a deposit of the 10% from the $1000. This means to save $100 and use the rest $900 to generate credits to other customers.

The $900 remaining will be loan to individuals or companies to finance new projects such as: Buying a car, house, invest in machinery or re design a branch from a cloth store.

These projects boost economic growth as they move the economy with consumption, and investment.

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A local pizzeria sells 500 large pepperoni pizzas per week at a price of $20 each. Suppose the owner of the pizzeria tells you t

n200080 [17]

Answer:

He will sell 600 pizzas per week if he cuts the price by 10%.

Explanation:

Price Elasticity of demand measure the responsiveness of demand to change in the price of a product. It calculates the ratio of change in demand and change in price.

Price elasticity of demand = % change in demand / % change in price

-2 = % change in demand / 10%

% Change in in demand = -2 x 10%

% Change in in demand = -20%

Following the law of demand as price decreases the demand of the product increases. So the sale of Pizzas will be increased by 20%.

Current Sale of Pizzas = 500 pizzas

Increase in sales = 500 x 20% = 100 pizzas

Increased sale = 500 + 100 = 600 pizzas

7 0

3 years ago

Louis Petit, a manager of Doggone Gorgeous, Inc., was reviewing the water bills of a dog daycare and spa. He determined that its

Sergeeva-Olga [200]

Answer:

Fixed cost = $1100

Explanation:

given data

Highest bill = $3,800

lowest bills = $2,000

dog washed in May = 600

dog washed in November = 200

to find out

fixed cost associated with the company's water bill

solution

first we get here variable cost that is express as

variable cost = (Highest bill - Lowest bill) ÷ ( Dogs washed may - Dogs washed November ) ...........1

put here value we get

variable cost = $\frac{3800-2000}{600-200}$

variable cost = $4.5 per dog

so fixed cost will be here as

Fixed cost = Total cost to wash 600 dogs - Variable cost to wash 600 dogs

Fixed cost = $3800 - $4.5 × 600 dogs

Fixed cost = $3800 - $2700

Fixed cost = $1100

7 0

3 years ago

BE9.5 (LO 3), AP For Gundy Company, units to be produced are 5,000 in quarter 1 and 7,000 in quarter 2. It takes 1.6 hours to ma

azamat

Answer:

The correct answer for quarter 1 is $120,000, for quarter 2 is $168,000 and for 6 months is $288,000.

Explanation:

According to the scenario, computation of the given data are as follows:

Direct labor cost for Quarter 1 = Total Required Direct Labor Hours × Direct Labor Wage

Where, Total Required Direct Labor Hours = 5,000 × 1.6 hours = 8,000 hours

So, Direct labor budget for Quarter 1 = 8,000 × $15 = $120,000

Direct labor budget for Quarter 2 = Total Required Direct Labor Hours × Direct Labor Wage

Where, Total Required Direct Labor Hours = 7,000 × 1.6 hours = 11,200 hours

So, Direct labor budget for Quarter 2 = 11,200 × $15 = $168,000

So, Direct labor budget for 6 months = Direct labor budget for Quarter 1 + Direct labor budget for Quarter 2

= $120,000 + $168,000

= $288,000.

5 0

3 years ago

Serenity is a manufacturer of outdoor fountains that are popular in gardens. even though fountains represent a product category

Elza [17]

It would be D. logistical

3 0

3 years ago

Logan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis of

ZanzabumX [31]

Answer:

a. Logan's recognized gain is $38,600

b. Logan's recognized gain is $23,160

Explanation:

a. If the worth of the land for Jonathan is $183,350, then the gain recognized by Logan would be;

the lower of the realized gain between the amount realized of $231,600 - adjusted basis of $193,000 = $38,600

or the fair market worth of the received boot i.e $48,250.

Therefore, Logan's recognized gain is $38,600

b. Suppose Jonathan's land is worth, $208,440, then we can calculate Logan's recognized gain to be ;

the lower of the realized gain I.e amount realized of $231,600 - adjusted basis $193,00 = $38,600

or the fair market value of the received boot I.e $23,160 .

Therefore, Logan's recognized gain is $23,160

6 0

3 years ago