The Source of the Supply of Loanable Funds

question 101

Multiple Choice

The source of the supply of loanable funds

• A)is saving and the source of demand for loanable funds is investment.
• B)is investment and the source of demand for loanable funds is saving.
• C)and the demand for loanable funds is saving.
• D)and the demand for loanable funds is investment.

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Definitions:

Variable Cost

Expenses that vary directly with the level of production or volume of operations in a business.

Period Cost

These are costs that are not directly tied to the production process and are expensed in the period in which they occur. Examples include selling, general, and administrative expenses.

Raw Materials

Basic materials used in the production process, transformed into finished goods through manufacturing or processing.

Computer Board

A printed circuit board used in a computer to which the processor, RAM, and other components are attached.