Which of the Following Is Included in the Demand for Loanable

question 93

Multiple Choice

Which of the following is included in the demand for loanable funds?

• A)investment and government borrowing
• B)investment but not government borrowing
• C)government borrowing but not investment
• D)neither government borrowing nor investment

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Definitions:

Accrual Basis

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.

Earned Revenues

Income a company has generated for goods delivered or services provided, recognized when earned, not necessarily when received.

Incurred Expenses

Expenses that have been recognized in the accounting period when they are incurred, regardless of when the payment is made.

Profit Margin

A financial metric that shows the percentage of a company's revenue that remains as profit after accounting for costs and expenses.