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3 years ago

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

Business

2 answers:

lukranit [14]3 years ago

7 0

Answer:

1. Increases in demand will increase both the interest rate and the total amount of borrowing and lending. Decreases in demand will decrease both the interest rate and the total amount of borrowing and lending.

Explanation:

NeTakaya3 years ago

7 0

I think the answer is False.

You might be interested in

When creating a data backup plan or policy, what five basic questions should be answered?

Tresset [83]

Each establishment, whether small or big, government-owned or private companies, always have to backup their files in case of emergencies. As you make your backup plan, you must come across these five basic key questions:

1. Are you backing up all your data? You have to sort your files to be backed up because storage can be limited.

2. How often is your data backed up? You must make sure to back up your data on a regular basis, if not day-to-day.

3. Who is responsible for your backups? For big companies, it is too big of a task for one person to shoulder. Usually, this is tackled by a department, usually the I.T. Department.

4. Do your backups actually work? You should test regularly if these back ups actually work by restoring data files every now and then.

5. Do you have right backup checks and balances in place? The I.T Department tackling backup plans is one thing. But there should also be checks and balances so that you have a backup of your backup. It's better to be safe than sorry.

6 0

3 years ago

Ronald, Ross, and Carol opened a partnership firm. Ronald has a capital of $77,000; Ross has a capital of $119,000; and Carol

gtnhenbr [62]

Answer:

A. Carol, Capital is debited for $4,500

Explanation:

The question says to determine amount to be included in the journal entry to record Ronald's withdrawal from the partnership

Assumption: Equal Profit- loss sharing is the agreement between the existing partners.

First premise: Ronald's Capital in the Partnership = $77,000

However, Ronald received a payment of $86,000 meaning that there is an excess of $86,000-$77,000= $9,000

Since the agreement is equal profit and loss sharing, it means each of Ross and Carol will contribute 1/2 of the $9,000.

The journal entry to record this transaction is as follows:

Particulars Debit Credit

Carol Capital Account $4,500

Ross Capital Account $4,500

Ronald Capital Account $9,000

Being the equal contribution of excess amount paid to Ronald on exit from the partnership by Carol and Ross.

Based on the multiple choices, the correct answer is Carol, Capital is debited for $4,500

4 0

3 years ago

A difference in quantity of materials used on two comparable jobs may be caused by a.employee carelessness b.poor quality materi

Elodia [21]

Answer: d.All of these choices are correct.

Explanation:

All the above can result in different quantities of materials being used for comparable jobs.

Employee Carelessness can cause more material to be used if they fail to adequately measure the Requirements of a job. If they are also careless in the usage of the material, there will be wastage and therefore a larger use of materials.

Poor Quality Materials can also result in different quantities being used because for instance, more material could be required to do something that a stronger material could have easily done.

Inadequately trained Employees is a major reason for Material Wastage. If employees are not trained by seasoned people who know how to reduce wastage, that knowledge could take time to come to them. If they were adequately trained however, they can master the tricks on wastage avoidance and limit discrepancies in the amount of materials used per comparable jobs.

7 0

3 years ago

Mountaineers Inc. sells its rock-climbing shoes worldwide. Mountaineers Inc. expects to sell 4,000 pairs of shoes for $165.00 ea

bogdanovich [222]

Answer:

expected sales January, 4,000 pairs of shoes at $165 each = $660,000

expected sales February, 2,000 pairs of shoes at $220 = $440,000

expected COGS = 75% of expected revenue

expected sales March, 4,600 pairs of shoes at $240 = $1,104,000

ending inventory = $18,000 plus 45% of next month's COGS

<h2> <u>Sales budget</u> </h2>

Month January February March

Units 4000 2000 4600

Price $165 $220 $240

Total sales $660,000 $440,000 $1,104,000

<h2><u>Inventory, Purchases and COGS Budget</u></h2>

January February March

cost of goods sold $495,000 $330,000 $828,000

<u>+ desired ending inventory $166,500 $390,600 ? </u>

Total merchandise required $661,500 $720,600 ?

<u>- beginning inventory ($315,000) ($346,500) ($374,100)</u>

budgeted purchases $346,500 $374,100 ?

8 0

3 years ago

Which of the following should be disclosed by a company providing health care benefits to its retirees? I. The assumed health ca

mars1129 [50]

Answer: Both I and II

I. The assumed health care cost trend rate used to measure the expected cost of benefits covered by the plan. II. The accumulated post retirement benefit obligation.

Explanation:

Company must disclose the expected cost of benefits covered by their health care plan and also the accumulated post retirement benefit plan obligation.

5 0

3 years ago