How can a bank afford to pay interest? Banks use the money deposited on savings accounts to lend to borrowers, who pay interest on their loans. ... The difference between the money earned as interest on loans, any operating expenses, and the money paid as interest to savings accounts is profit to the banks.
Answer:
A cooperative can be understood as a business model where there is a partnership between people with the same interests in an economic activity, not for profit, and who provide associated services.
In this voluntary society, there are its own rules and autonomy, being the voluntary and independent association, where there is the cooperation of each member and sharing of the management, of the positive and negative risks to the business. All members have economic participation and access to information and training. Interest on capital is limited and the surplus is distributed among all members.
Answer:
The correct answer is letter "C": shortage costs increase as total carrying costs increase.
Explanation:
A shortage takes place when the quantity demanded is higher than the supply at the current price. Typically, shortages occur because of an increase in demand, a decrease in supply or due to government policies. Shortage costs are those costs a firm is responsible for because the is no enough stock in its inventory. When shortage costs increase, the carrying costs do not necessarily increase.
Answer:
price acts as an incentive to consumers and producers. highest (lowest ) prices to obtain consumer to give up more good consumers react to changing price alternative by stopping the quantity of goods demanded
