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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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Cash flows from investing activities include all of the following except:
astra-53 [7]

Answer:

(D) Cash proceeds from borrowing

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets. It also includes collections on loans and  Cash advance to borrowers

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

Options A, B, and C are the investing activities whereas option D is financing activities.

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3 years ago
Blanche Corporation adds materials at the end of the process in the injection department, which is the second of two stages of i
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Answer:

The material cost of the work in process at March 31 is d. $0

Explanation:

Note: Equivalent unit of Work in process of Material is 0 as material are added at the end of process which leads to total cost of material of work in proccess = 0.

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3 years ago
I got 1000 point \<br> now I got 990 lol
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Answer:

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Explanation:

7 0
2 years ago
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If you are starting a new business, you can assume with some certainty that your customers will have the same level of technolog
kakasveta [241]
This would be false
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3 years ago
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George’s t-shirt shop produces 5,000 custom printed t-shirts per month. george’s fixed costs are $15,000 per month. the marginal
k0ka [10]

Answer: Price is $7 when sale is 5000 and $6 when sale is 7,500 units.  

Explanation:

Total cost of George = Fixed cost + Variable Cost = $15,000 + $4 (Units produced)  = $15,000 + $4(5000) $15,000 + $20,000 = $35,000


George will breakeven when his price is just sufficient to cost the total cost.  

Break even = Profit = 0 Total revenue - Total cost = 0 P*Q - $35,000 = 0 P*5000 = $35000 P= $35,000/5000 P=$7

 

If George sells 50% more, then his sales is 7,500 units.  

Total cost of George = Fixed cost + Variable Cost = $15,000 + $4 (Units produced)  = $15,000 + $4(7,500) $15,000 + $30,000 = $45,000


George will breakeven when his price is just sufficient to cost the total cost.


Break even = Profit = 0 Total revenue - Total cost = 0 P*Q - $45,000 = 0 P*7500 = $45000 P= $45,000/7,500 P=$6

When sales is 5000 units price is $7. When sales is 7,500 units price is $6.

8 0
3 years ago
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