When Will Saving Equal the Surplus Funds a Spending Unit

question 52

Multiple Choice

When will saving equal the surplus funds a spending unit has available to lend?

• A)When the spending unit purchases primary financial assets
• B)When the spending unit purchases either direct or indirect financial assets
• C)When the spending unit does not make any investment in capital, inventories, or newly-constructed houses
• D)When the spending unit purchases primary or secondary assets

---

Definitions:

Average Rate

A mean value calculated to represent the typical rate of something, such as interest, return, or speed, over a given period.

Fixed Asset

Long-term tangible property that a firm owns and uses in its operations to generate income, such as buildings and machinery.

Useful Life

The estimated period over which an asset is expected to be usable by an organization, after which it is considered to be no longer useful for business operations.

Residual Value

The estimated worth or salvage value of an asset at the end of its useful life.