What is financing deficit ?

Q: Define the term loan cash flow?

A: Statement of cash flow: It refers to a financial statement that shows all the cash payments and…

Q: What is financing feedback?

A: Introduction: Financing feedback is generated when interest expenditure is overestimated, reducing…

Q: Another implication of fiscal deficit is

A: Following is the answer to the question

Q: What are the limitations of balance sheet?

A:

Q: what is the meaning, purpose and formula of External Financing Need?

A: Finance Finance refers to the provision of money at the time it is required. Every business needs…

Q: What is a debt security?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: What are Debt Instruments?

A: Answer: Debt instrument is like a tool a company may use in capital raising. It allows the holders…

Q: What means Finance?

A: The term finance means the management of cash and incorporates activities like, projecting, savings,…

Q: What is financial material abuse?

A: Financial Material Abuse - Financial material abuse refers to the abuse of  fraud , theft or making…

Q: What is a financial security?

A: Investors use financial security to be secured financially as they can get some income on periodic…

Q: What is the loan cash flow?

A: Answer: A cash flow loan is nothing but a form of debt finance in which bank lends money usually for…

Q: What is the difference between a budget deficit and a budget surplus?

A: A budget deficit is when the expenses outweigh the revenue brought in by a project. Conversely, a…

Q: What are some forms of off-balance-sheet financing?

A: Balance Sheet: Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of…

Q: What is the Importance of Accrued Interest and Loan Payments?

A: When the bonds are being purchased and sold at that time accrued interest is considered to be…

Q: What is Unsecured financing?

A: Whenever a person requires financial assistance, they may contact a financial institution and seek…

Q: What is a federal budget deficit or surplus? How does this affectinterest rates?

A: The question is based on the concept of federal budget position and its impact on the prevailing…

Q: What is liabilities?

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: What are funds transfer pricing?

A: Funds transfer pricing (FTP): It is a method used to estimate how financing/funding improves a…

Q: What is the difference between Direct and Indirect Financing?

A: Difference between direct financing and indirect financing are as follows

Q: What are the problems encountered by the financial system? What is/ are assessment to these…

A: The group of institutions like banks, insurance companies, mutual funds, stock exchanges, etc. that…

Q: What is unsecured borrowing?

A: Definition:   Liabilities: The claims creditors have over assets or resources of a company are…

Q: What is a financial instrument?

A: Introduction: A financial instrument is a physical or computer-generated document showing a legal…

Q: Explain the differences between domestic debt and external debt.

A: Debt is defined as money borrowed through one party by another. Many businesses and people utilize…

Q: What is the price paid to borrow debt capital called?

A: The amount that is borrowed by the company from financial institutions, banks, or by issuing the…

Q: What is financial reporting environment?

A: A short introduction to Financial Reporting- Basically it is a standard accounting practice that…

Q: What is funding strategy?

A: Introduction: Strategy usually entails setting targets and objectives, defining steps to meet the…

Q: What are financial obligations? How they can be overcome?

A: Liabilities:The claims creditors have over assets or resources of a company are referred to as…

Q: What are the essential differences among demand deposits, savings deposits, and time deposits?

A: Deposits refers to the sum of money that are deposited with banks or any financial institution.…

Q: What is credit risk

A: In the world of finance credit risk is one of the most important risk and one of the most tangible…

Q: What does the financing activities include?

A: The statement of cash flows is the statement which shows the change in the cash and cash equivalents…

Q: Why monetary policy is important?

A: Monetary policy is the policy which controls the supply of money available in the country to promote…

Q: Why does the use of debt lower ROA?

A: Introduction: Debt can be characterised as an amount or sum owned by a person to another for…

Q: What is Secured Borrowing?

A:

Q: explain deficit finance

A: Financing refers to the process where funds are provided to various investors or an individual for…

Q: EXplain the loan structuring?

A: Loan restructuring is designing of loan according to the requirements of the borrower and also to…

Q: What is public finance?

A: Public finance reflects on how and when the government needs to intervene in the economy.

Q: What are the benefits of using debt security?

A: The financial instruments which are bought by investors, or corporations, or mutual funds, are…

Q: What are Finances?

A: Finances: It contains leverage/debt, banking, capital markets, investments, credit, and the…

Q: What is finance

A: Finance brings a business to life. Finance is important for every part of a firm's operations.…

Q: What are the credit transfer markets?

A: Financial market is called as a place where all securities such as bonds, shares, debentures etc.…

Q: Describe the Debt Management Analysis?

A: Debt is an amount of money borrowed by one person from another person. Debt is utilized by numerous…

Q: Types of seller financing?

A: Seller Financing: A real estate or property agreement under which the mortgage process is managed by…

Q: Describe the method of determining the Cost of Debt?

A: The cost of debt is the profit a business offers its debtors and creditors. These capital suppliers…

Q: What is debt

A: The financial statements of the business includes the income statement and balance sheet of the…

Q: What are the difficulties associated with the financial system and how these challenges can be…

A: Financial system is undergoing a significant change with the advancement of technology. It has…

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.