our(4) factors that affect the level of interest rate are Production opportunities, Time preferences for consumption, Risk and Excepted inflation. Explain how each factors works

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A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one...

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A: The promissory notes also known as the notes receivables are the fixed documents which shows the amo...

Q: 4. I just began working and was advised by an insurance agent to invest for retirement. An ordinary ...

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Q: National Co. follows a strict residual dividend policy.  The company is forecasting that its net inc...

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Q: When calculating interest on loans with terms of days, there are two methods. Ordinary interest use...

A: Ordinary interest is a simple interest that uses 360  days as the equivalent number of days in a yea...

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A: Maturity value can be calculated by using this equation  Maturity value =Principal*(1+rate*time)

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Q: Upon receiving the 10 percent stock dividend the value of his shares is?

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Q: 1. Mr. Roberto Cáceres wishes to obtain a loan of $15,000 for the purchase of furniture for your off...

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Q: Compute the future value o

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A: The maturity value is calculated as sum of principal and interest earned

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A: Ordinary interest method uses 360 days in a year. Principal amount can be calculated with the help o...

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Q: 1

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A: Black and scholes model: It is the model used to calculate the value of a call option as well as put...

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Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.