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3 years ago

In 1-3 sentences, describe the saving-borrowing-investing cycle.

Business

1 answer:

beks73 [17]3 years ago

5 0

Answer:

see below

Explanation:

Saving involves putting aside a portion of one's income for future consumption. Financial institutions provide savings accounts where the public can save money. When many people save, the banks find themselves holding a lot of money in their custody. Since the banks have a need to make profits, they loan out these savings to individuals and businesses for expansion and consumption. When businesses borrow to expand, they are investing; when individuals borrow to start a business, it's an investment.

Savings in financial institutions provide funds for businesses and households to borrow and invest. The proceeds of investments are deposited in banks, loaned out again, and the cycle continues.

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You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 20

Zarrin [17]

Answer:

$1,247.12

Explanation:

For computing the asked price we need to apply the present value formula i.e to be shown in the attachment below

Given that,

Future value = $1,000

Rate of interest = 4.151% ÷ 2 = 2.076%

NPER = 17 years × 2 = 34 years

The 20 years come from May 2019 to May 2036

PMT = $1,000 × 6.193% ÷ 2 = $30.965

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value or the ask price is $1,247.12

8 0

3 years ago

Of money's three functions, the one that distinguishes money from other assets is its function as a a. store of value. b. unit o

tiny-mole [99]

The one that distinguishes money from the other assets is that it is used as a medium of exchange

Explanation:

Money is one of the most important factor in our day to day lives it has become as defining the country's economic standard and it is widely accepted all over the world

Money is used as the medium of exchange because we can buy all the necessary things using the money and can use it as a medium to exchange of goods and services. There are also other important functions as the method of comparing the values

4 0

3 years ago

SWH Corporation issued bonds on January 1, 2004. The bonds had a coupon rate of 5.5%, with interest paid semiannually. The face

Mashutka [201]

It should be the Second one that fits the best answer

4 0

3 years ago

In a statement of cash flows, which of the following would be classified as an investing activity?

Elanso [62]

Answer:

C. The sale of equipment.

Explanation:

Investing activities: It records those activities that include the long-term asset buying and selling. The buying is a cash outflow while the sale is a cash inflow.

The cash outflow decreases the cash balance whereas cash inflow increases the cash balance. So the buying would be shown in a negative sign while the selling is shown in the positive sign

Hence, the correct option is C.

5 0

3 years ago

The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicat

Anastasy [175]

Answer:

Total overhead cash disbursement= $155,160

Explanation:

Giving the following information:

The direct labor budget indicates that 7,500 direct labor-hours will be required in February. The variable overhead rate is $8.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $110,250 per month, which includes depreciation of $18,090.

First, we need to calculate the allocated variable overhead:

Variable overhead= 7,500*8.4= 63,000

Depreciation is not a cash disbursement:

Fixed overhead= 110,250 - 18,090= 92,160

Total overhead cash disbursement= 63,000 + 92,160= $155,160

8 0

3 years ago