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miv72 [106K]
3 years ago
13

Explain how savers would respond if the interest rate on savings accounts increased. Would they increase or decrease their amoun

t of savings? What about borrowers? Would they increase or decrease their amount of borrowing if the interest rate on loans increased? Explain why.
Business
1 answer:
andrezito [222]3 years ago
5 0

Answer:

1. Savers increase their savings as interest rate increases

2. Borrowers decrease their borrowing as interest rate on loans increases

Explanation:

1.

Interest rates are a great determinant of what those who save money get on their deposits. When interest rate increases, people tend to save more so as to earn more interest on their deposits. So it encourages savings. Therefore as interest rate increases savers would increase their amount of savings.

2.

For borrowers, more interest rate on loan amount discourages borrowing. More interest rate means that they would have to pay back more money on the loan amount they borrowed. This implies a rise in the cost of borrowing. So the borrower decreases the amount of borrowing if interest rate on loan increases.

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Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing ov
rosijanka [135]

Answer:

Note: The full question is attached below

Date      Accounts Title and Explanation        Debit     Credit

Mar-31   WIP-Fermenting Department            $15,971

                     Raw Material Inventory                                $9,288

                     Wages payable                                             $3,305

                     Manufacturing Overhead                             $3,378

              (Being cost assigned to WIP-Fermenting department)

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2 years ago
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Bal
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Answer:

The proforma income statement and balance sheet are found in the attached

Above all,additional financing of $1982  is required to finance the growth of 20%

Explanation:

The additional finance is necessary as the assets required for the additional growth of 20% is worth $27900 while debt plus equity(including the added profit of $1318) only gives $25918,there resulting in shortfall in finance of $1982.

Also, a different source of finance other than debt can be used depending the interest applicable since the amount involved is minute.

Download xlsx
6 0
3 years ago
Halka Company is a no-growth firm. Its sales fluctuate seasonally, causing total assets to vary from $345,000 to $410,000, but f
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Answer:

$345,000

Explanation:

Since Halka Company uses a maturity matching approach, it must match its short term working capital with its short term debts, and its long term working capital with its long term debts. Halka's assets should be compensated with a corresponding debt instrument of similar maturity.

Since Halka's assets vary form $345,000 to $410,000, its long term debt plus equity should match at least $345,000.

3 0
3 years ago
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aliina [53]

Answer:

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The presentations helps the sales team to market their product easily. The brochures, pictures, catalogs and graphs are used for easy illustrations. They help the managers and clients to easily understand the product features and its performance over years with comparison of other products.

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3 years ago
_____ money is what's available after paying for the necessities of life
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Surplus money is your answer

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