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3 years ago

If the demand for loans increases, the interest rate will fall. True or false

Business

1 answer:

guajiro [1.7K]3 years ago

8 0

Answer:

false

Explanation:

Interest is the cost of using credit. The applicable interest rate determines this cost. Like most other commodities, interest rates are subject to the forces of demand and supply.

If the demand for credit increases, then the cost of credit will increase, meaning interest rates will increase. On the other hand, a decline in the demand for loans will cause interest rates to reduce.

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Trusper Company was organized on January 1, Year 1 and has had 1,000 shares of $200 par value, 10% cumulative preferred stock ou

snow_tiger [21]

Answer:

$50,000

Explanation:

Generally, preferred stockholders receive dividends earlier than common stockholders. Moreover, as the preference shareholders are cumulative, if they do not receive dividends current year, they will receive in the next year. Finally, preferred dividend is fixed until there are new issuance of preferred stock.

Preferred dividends for Year 1 = 1,000 shares × $200 × 10% = $20,000

For year 2 = $20,000

Given, total dividends in year 1 = $15,000

Therefore, company provides $15,000 to preferred dividends. No common dividends in year 1.

However, in the next year (Year 2), the company will pay $5,000 + $20,000 = $25,000 to preferences shareholders.

Therefore, remaining dividends are for common stockholders.

Year 2 common stockholders dividends = $75,000 - $25,000 = $50,000.

8 0

3 years ago

All of the following are functions of a knowledge management system EXCEPT: a. designing information systems. b. improving colla

Alika [10]

Answer:

designing information systems

Explanation:

knowledge management system are system designed to managed the knowledge of a company. The design of IT Systems is not under it scope.

7 0

3 years ago

Complete the following:

Gekata [30.6K]

I believe its owners , but hopefully i helped

3 0

3 years ago

Pharoah Incorporated factored $154,700 of accounts receivable with Engram Factors Inc. on a with recourse basis. Engram assesses

VashaNatasha [74]

Answer:

Cash 135,604 debit

Due from factor account: 7,735 debit

Loss on Factoring 18,081 debit

Recourse Liability 6,720 credit

Accounts Receivable 154,700 credit

--to record sales of account receivables--

Explanation:

fee: 154,700 x 3% = 4,641

retention: 154,700 x 5% = 7,735

recourse: 6,720

The company will receive cash for the difference between his account receivable and the discount above:

154,700 - 4,641 - 7,735 - 6,720 = 135.604‬

We post the retention as an assets as latter we will recove this amount.

Then, the recourse as a liaiblity. Write-off the receivables and later, the cash receipts.

The difference will be considered a loss.

5 0

3 years ago

The Real Estate Settlements and Procedures Act (RESPA) applies to: Select one: A. those parties who are indirectly related to a

ad-work [718]

Answer:

D. all residential mortgages for occupancy only.

Explanation:

The act applies to the loan purchases, property investments and equity lines of credit. It proves brokers to give disclosure of borrowers regarding the real estate.

8 0

3 years ago