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3 years ago

Within the context of the circular flow of income model, what is the role of financial intermediaries?

Business

1 answer:

Lesechka [4]3 years ago

8 0

Answer:

The role that financial intermediaries play in that diagram of the economy is to leakage or inject money.

Explanation:

To begin with, the concept known as "Circular Flow of Income" refers to a model that is famously known in the economics sciences due to the fact that it is a graphic that shows how the primary entities of the economy of a country interact with each other in order to have a particular outcome expected in the diagram. Therefore that in that context, the financial institutions play the role of intermediaries inside the flow meaning that the can they can either leakage or inject money to the flow. The first one they do it by helping the households to save money in accounts. And the second one they do it by helping the private sector in terms of investing regarding businesses.

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In many developing countries, the majority of citizens make their living through microenterprises- informal, tiny businesses tha

natita [175]

Answer:

The company provides micro financial services to poor and the needy people having no access to regular banking services

This helps to boost small businesses and financial inclusion which are heart of any economy and vital to the economy and promoting growth.

Possible measures taken by the organization includes providing funds for at lower interest rates and providing credit services. Subsidized credit to deficient areas increases productivity and employment growth by means of boosting the small and medium-sized enterprises.

This may work in poor communities in United States. However in united schemes there are lots of other governmental schemes such as coupons, free food etc program are already running.

However, these programs are also carrying a potential here. But there potential is much greater in poor countries having less developed banking and financial reach.

Explanation:

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3 years ago

Problems and Applications Q2 Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per

kari74 [83]

Answer:

$550,000

Explanation:

Based on the information given the OPPORTUNITY COST OF RUNNING THE HARDWARE STORE will be $550,000 ($500,000+$50,000), which include the amount of $500,000 which is the cost of renting the store as well as to the cost to buy the stock while the $50,000 is her salary as an Accountant, reason been that she would QUIT HER JOB as an accountant in order for her to run the store.

Therefore the OPPORTUNITY COST will be $550,000

3 0

2 years ago

Elite Trailer Parks has an operating profit of $307,000. Interest expense for the year was $32,000; preferred dividends paid wer

ollegr [7]

Answer:

a. $8.33

$1.95

b.$136,500

Explanation:

The computation of earnings per share and the common dividends per share is shown below:-

a. Earning per share = Earnings Available to Common Stockholders ÷ Number of Shares of Common Stock Outstanding

= $178,300 ÷ 21,400

= $8.33

Dividends per Share = $41,800 ÷ 21,400

= $1.95

b. Increase in retained earnings = Operating Profit (EBIT) - Interest expense - Taxes - Preferred dividends - Common dividends

= $307,000 - $32,000 - $65,100 + $31,600 + $41,800

= $136,500

We simply applied the above formulas

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3 years ago

(blank1) is a writer’s early attempt at writing a full message. It is rough and can’t be (blank2) until it is revised and edited

Rufina [12.5K]

Answer:

the answer is g because i jut got the answer correct and because im smart

Explanation:

6 0

2 years ago

Manufactured goods needed to produce other goods and services are called

salantis [7]

When manufactured goods are used to produce other goods and services, they are called capital goods.<span>True</span>

3 0

3 years ago