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Salsk061 [2.6K]
3 years ago
10

If there is a surplus in the market for loanable funds, the resulting change in the real interest rate a. raises the quantity of

loanable funds supplied and reduces the quantity of loanable funds demanded. b. reduces the quantity of loanable funds supplied and raises the quantity of loanable funds demanded c. raises both the quantity of loanable funds supplied and the quantity of loanable funds demanded. d. reduces both the quantity of loanable funds supplied and the quantity of loanable funds demanded.
Business
1 answer:
Arlecino [84]3 years ago
7 0

Answer:

The correct answer is option b.

Explanation:

A surplus in the market for loanable funds is likely to cause a fall in the interest rate. At lower interest rate, people who need credit will demand more loanable funds. While the suppliers will provide less funds. So, the demand of loanable funds will increase and the supply will decrease.

This process will continue till excess demand will cause the interest rate to rise. The initial equilibrium will be restored eventually.

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The following information pertains to Lightning Inc., at the end of December: Credit Sales $ 20,000 Accounts Payable 10,000 Acco
OLEGan [10]

Answer:

Lightning Inc.

Computation of Bad Debts Expense:

7% of $7,500 =   $525

21% of $1,600 =    336

46% of $1,300 =   598

Total                 $1,459

Explanation:

a) Data and Calculations:

Credit Sales $ 20,000

Accounts Payable 10,000

Accounts Receivable 10,400

Allowance for Uncollectible Accounts 400 credit

Cash Sales 20,000

Lightning uses the aging method and estimates it will not collect 7% of accounts receivable not yet due, 21% of receivables up to 30 days past due, and 46% of receivables greater than 30 days past due.

The accounts receivable balance of $10,400 consists of $7,500 not yet due, $1,600 up to 30 days past due, and $1,300 greater than 30 days past due.

Age Analysis of Accounts Receivable balance of $10,400

                  Not yet due     up to 30 days         greater than 30

                                               past due              days past due

Percentage         7%                         21%                  46%

Balance           $7,500                  $1,600               $1,300

Bad debts          $525                     $336                 $598

Bad debts Expense = $1,459            

6 0
3 years ago
GNI PPP, or gross national income divided by purchasing power parity, helps measure:
Mekhanik [1.2K]

Answer: 1- the standard of living in a country.

Explanation: The standard of living is a measure of the material aspects of an economy. It counts the amount of goods and services produced and available for purchase by a person, family, group, or nation.

The generally accepted measure of the standard of living is GDP per Capital. This is a nation's gross domestic product divided by its population. The GDP is the total output of goods and services produced in a year by everyone within the country's borders. it can also be measured using the gross national income divided by purchasing power parity.

8 0
3 years ago
The Comil Corporation recently purchased a new machine for its factory operations at a cost of $328,325. The investment is expec
Solnce55 [7]

Answer: 15%

Explanation:

IRR is the discount rate that makes the NPV equal zero. Required rates of return that are less than the IRR will therefore result in a positive NPV and those that are higher will result in a negative NPV.

Use Excel to find the IRR.

= IRR(-328325,115000,115000,115000,115000)

= 15%

As the required rate of 13% is less than the IRR of 15%, the new machine will have a positive NPV.

6 0
2 years ago
Case 6-2 Bryan has just started an internship in which he uses a database frequently. The database contains information about th
Viktor [21]

Answer: Database File

Explanation:

From the given case/scenario , we can state that Bryan needs to create <em>database file. </em>Database files tends to store the data and information, at times usually it is stored in series of several tables, field the data values and table field. The data and information is then further organized and stored in accordance to data model.

7 0
3 years ago
Use the following account balances from the adjusted trial balance of Maynard Consulting:Account Debit Balance Credit Balance Ca
Aleonysh [2.5K]

Answer:

D) debit Income Summary $8,300 and credit Salary Expense $2,600; credit Rent Expense $3,000; credit Supplies Expense $1,900; Advertising Expense $800.

Explanation:

Account                             Debit Balance     Credit Balance

Cash                                     $20,500

Accounts Payable                                            $2,000  

B. Conway, Drawing                  $600

B. Conway, Capital                                            $13,000

Fees Revenue                                                    $18,000

Salary Expense                         $2,600

Rent Expense                            $3,000

Supplies Expense                      $ 1,900

Advertising Expense                     $800

To close the income statement, the income summary account is introduced. All credit items on the income statement (revenue and incomes) are debited and the income summary is credited while the debit balance accounts (all expenses) are credited and the income summary is debited.

Total expense = $2,600 + $3,000 + $1,900 + $800

= $8,300

6 0
3 years ago
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