Four fundamental factors affect the cost of money: (1) the return that borrowers expect to earn on their investments. (2) the preference of savers to spend their income in the current period rather than delay their consumption until some future period. (3) the risks associated with the investment. (4) expected inflation.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Four fundamental factors affect the cost of money: (1) the return that borrowers expect to earn on their investments. (2) the preference of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A transaction that is likely to cause an increase in a current liability is: Multiple Choice payment of accrued wages. accrual of interest expense. depreciation of equipment. accrual of bad debts expense
Answers (1)
During March 2019, Annapolis Corporation recorded $40,600 of costs related to factory overhead. Alpha's overhead application rate is based on direct labor hours.
Answers (1)
Use the following information for #22 and #23: Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $18,000. Budgeted cash receipts total $183,000 and budgeted cash disbursements total $188,000.
Answers (1)
Our company is deciding whether to invest in a new machine. The new machine will increase cash flow by $324,000 per year.
Answers (1)
Paige applies to work for Quibbling & Company. Reece applies for admittance to State University. As part of their applications, Paige and Reece are asked to divulge their social media passwords.
Answers (1)
New Questions in Business
At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000. During the year, the company reported total revenues of $226,000 and expenses of $175,000.
Answers (1)
Company X failed to record (accrue) $5,000,000 of vendor invoices and warranty liability at year-end. With this omission, the company's summary financial statements were stated as follows:Summarized Income StatementSales $50,000,000All Cost (incl.
Answers (1)
Levine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $8,600 (that had cost $6,355) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee.
Answers (1)
G. R. Edwin Inc. had sales of $6.02 million during the past year. The cost of goods sold amounted to $3.06 million. Operating expenses totaled $2.65 million, and interest expense was $27 comma 000.
Answers (1)
During the year, Calabash Clinic made a $50,000 cash payment toward its bank loan, which it had previously recorded; $40,000 was for principal, and $10,000 was to pay the full amount of interest due.
Answers (1)