Answer:
Operating Activities
3. Payment for inventory.
5. Interest paid.
Investing Activities
4. Purchase of equipment.
Financing Activities
1. Dividends paid.
2. Repayment of notes payable.
Explanation:
Operating Activities involves activities in the trading operations of the business.
Investing Activities involves activities in acquisition and sale of Company assets or Investments
Financing Activities involves activities in the sourcing and repayment of sources of finance to holders of the instruments.
Answer:
Create consumer demand.
Explanation:
Advertising helps promote your product so people will want to buy it.
Answer:
Option B
Explanation:
A bank makes profit when it gets more returns on the loan given as compared to the interest given on the deposited money.
Hence, option B is correct. In case A and C liability is greater than asset and hence this situation does not signify a profitable situation.
Also, option D is just the opposite of option B (profitable situation).
Answer:
b. decreases both the money multiplier and the money supply.
Explanation:
An increase in reserve requirements will decrease the money supply in the economy. This is because, banks and other financial institutions will have lower excess reserves to lend out to the public hence decreasing the overall amount of borrowing . Based on money multiplier, the explanation is based on the following equation;
Money multiplier = 1/ required reserve , if the required reserve increases then the fraction will be smaller. Therefore, the money multiplier will decrease too.
