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3 years ago

What factor reflects the 'cost of money'?

Business

1 answer:

abruzzese [7]3 years ago

5 0

Answer:

Production opportunities, time preferences for consumption, risk, inflation. Explanation: The cost of money is the interest rate that lenders charge borrowers, and is determined by the supply and demand of funds.

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If the supply of loanable funds shifts to the right, then the equilibrium interest ratea. and quantity of loanable funds risesb.

Amanda [17]

Answer:

Option (d) is correct.

Explanation:

When the supply of loanable funds increases and this change in loanable funds shifts the supply curve of loanable funds rightwards then as a result the equilibrium interest falls and the quantity of loanable funds increases.

In this situation, the supply of loanable funds exceeds the demand for loanable funds, so the financial institutions would provide funds at a lower interest rate to the borrowers.

Fall in the interest rate would induce borrowers to take loan at a cheaper rate.

7 0

3 years ago

What is an advantage of using the multiple-step income statement?

riadik2000 [5.3K]

Answer:

The major advantage of multiple step income statement is that it breaks down the operating revenues and the costs incurred in the business.

It shows separated Gross profit which can be calculated as: Sales - COGS.

Apart from that, it shows separate Operating Income: Gross Profit - Operating expenses.

Lastly, it shows Net income: Operating income + non operating income.

Hence, concluded that, multiple step income statement offers a greater and detailed picture as compared to single step income statement.

Hope this helps.

Good Luck buddy.

7 0

4 years ago

Read 2 more answers

The Fed threw a lot of money at the financial crisis in 2008 to unfreeze credit markets and encourage economic activity. As part

Vinvika [58]

Answer:

The actions of the Fed in 2009 are consistent with an expansionary monetary policy and this policy reduces or keeps interest rates low.

When the Fed bought that many government securities, they flooded the economy with $300 billion in cash. This cash would make its way into the pockets of people and into their bank accounts as savings.

With that many savings, banks would have much more money to loan out to people and as a result of this increase in the supply of loanable funds, interest would fall in order to entice people to borrow more of these excess funds.

3 0

3 years ago

What action can you take to provide the most help to a team that has worked together for more than a year and is familiar with t

Nata [24]

Answer: Aim should be reemphasized regularly, deadlines set and there should be a reward system.

Explanation:

Over familiarity breeds negligence or lost of steam or enthusiasm in a project. They are things that should be put into place to avoid being to familiar with projects and sleep on them;

- The aim and objective for which the was started should be reemphasized daily or weekly, this would help the team have it in mind that they would need to be on their best

- Deadline should be sets for smaller aspect of the project. The project should be split into phase and deadlines set to meet up each phase

- There should be a reward system. This strengthens the team to do more and make the team know that their value and input is well appreciated

8 0

3 years ago

Haight Company incurred direct materials costs of $1,500,000 during the year. Manu-facturing overhead applied was $270,000 and i

Alika [10]

Answer:

A. $2,220,000

Explanation:

We know,

Manufacturing cost = Direct material + Direct labor + Manufacturing overhead

Given,

Direct Material = $1,500,000

Manufacturing overhead = $270,000

To find direct labor, we have to use manufacturing overhead,

Manufacturing overhead = Direct labor x 60%

or, $270,000 = Direct labor x 60%

Direct labor = $\frac{270,000}{.60}$

Direct labor = $450,000

Therefore, total manufacturing costs = $1,500,000 + $450,000 + $270,000

Total manufacturing costs = $2,220,000

5 0

3 years ago