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Natali [406]
3 years ago
6

Select the true statement or statements regarding the loanable funds market. Foreign entities cannot save in the United States.

Savings refers to savings accounts held in banks only. The purchase of stocks and bonds is considered savings. Savings from households are used by firms and governments to finance investment.
Business
1 answer:
Shalnov [3]3 years ago
3 0

<u>Solution: </u>

The following are the correct and incorrect options

<u>Correct option</u>: Households used to save and those savings are utilized for investment through the intermediaries like bank. Firms and governments take those funds for their investment acts.

<u>Correct option</u>: Foreigner can invest in the US (suppose foreign direct investment) but can’t save here, since there is difference in currency (suppose a foreigner earns in pond can’t save in US dollar).

<u>Other options are not correct: </u>

<u>Incorrect option</u>: Savings means personal savings, which are not yet kept into a bank.

<u>Incorrect option</u>: such purchases are investments but not savings.

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Devin Company has the following data for their budget and actual performance. Actual Master budget Master Budget Variance Sales
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The operating income master budget variance 6687      Unfav

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Devin Company

Actual Vs. Budget Performance Report

For the year

                              Actual          Master       Master Budget  

                          Performance   budget         Variance

Sales                   150,298         155,842            5544    Unfavorable

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Operating Income 72743          79430             6687      Unfav

 

The operating income master budget variance is unfavorable because actual operating income is less than the budget operating income .

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Rice Co. was incorporated on January 1, Year 6, with $500,000 from the issuance of stock and borrowed funds of $75,000. During t
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Total liabilities = total assets = 500000 + 23000 + 94000 = 617000

8 0
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