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
poizon [28]
3 years ago
7

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.

You might be interested in
Parties more interested in managerial accounting data than in financial accounting data include
zvonat [6]
<span>The phase of accounting that is concerned with providing information to managers for use within the organization.

</span><span>Production manager, VP of Business Planning, Controller</span>
8 0
3 years ago
Dan has been directed to study the forces close to a company that affect its ability to serve its customers, such as the company
shutvik [7]

Answer:

Micro environment                                              

Explanation:

The institution's micro-environment comprises of those components that are manageable. Generally the micro-environment doesn't really impact all businesses in a sector in same manner, as the scale, efficiency, competence and approaches are different.

For instance, the suppliers of raw materials are giving big corporations more compromises. We might not offer small businesses the same concessions though. Thus, from the above we can conclude that the correct answer is micro-environment.

5 0
3 years ago
The first term of an arithmetic sequence is 10 and its common difference is
-Dominant- [34]

Answer:

The first term of an arithmetic sequence is 10 and its common difference is

negative seven.  What is the fourth term of the sequence?

The fourth term is -11

Explanation:

a.p= a1 + (n-1)d

a.p= 10+ (4-1) -7

a.p= 10 + (3) -7

a.p= 10 - 21

= -11

a1= first term

n= nth term

d= difference

3 0
3 years ago
Route Canal Shipping Company has the following schedule for aging of accounts receivable:Age of Receivables April 30, 20X1 (1) (
m_a_m_a [10]

Answer:

Explanation:

The formula to compute the percentage of amount due for each month is shown below:

= (Month wise amount due) ÷ (Total receivables) × 100

For April:

= ($156,240) ÷ ($390,600) × 100

= 40%

For March:

= ($78,120) ÷ ($390,600) × 100

= 20%

For February:

= ($117,180) ÷ ($390,600) × 100

= 30%

For January:

= ($39,060) ÷ ($390,600) × 100

= 10%

5 0
3 years ago
Retained earnings balance at the beginning of the year $ 135,000 Cash dividends declared for the year 55,000 Proceeds from the s
olganol [36]

Answer:

$51,200 was the cash dividends paid

Explanation:

Cash dividends paid=opening cash dividends payable +cash dividends declared-closing cash dividends payable

opening cash dividends payable is $27,000

cash dividends declared is $55,000

closing cash dividends payable is $30,800

cash dividends paid =$27,000+$55,000-$30,800=$51,200

The amount of cash transfers made in respect of shareholders dividends in the year is $51,200.

The logic is that the whatever is left unpaid at year end should be deducted from the balance owed year plus the new dividends declared this year

5 0
3 years ago
Other questions:
  • Holden is a people person. He is very good at working with customers and keeping a positive attitude. He has taken a couple clas
    9·1 answer
  • In 1-4 sentences, name and describe the three kinds of procedures in an economy.
    8·1 answer
  • In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five y
    8·1 answer
  • The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $11,000,
    14·1 answer
  • Heidi shares in the video that she has an open-door policy in which she invites her franchise owners and their employees to shar
    5·1 answer
  • Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system w
    13·1 answer
  • The two stocks in your portfolio, X and Y, have independent returns, so the correlation between them, rXY is zero. Your portfoli
    10·1 answer
  • When Building a Pallet to be shipped over the road, How Should The cases Be Placed On The Pallet?
    10·2 answers
  • Disadvantages of unit trust investment​
    15·1 answer
  • How did McDonald's use innovation and enterprise to help it's business growth?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!