Ask Question
BusinessBusiness
2 December, 09:27

The business demand for funds resulting from short-term investments is inversely related to the number of projects implemented and inversely related to the interest rate. a. True b. False

+1
Answers (1)
  1. 2 December, 09:31
    0
    False because the interest rate depends upon the economic conditions of the country and also on the risk associated with the company, its capital structure and credit risk. Yes it does depend on the finance required to fund the projects and investments but it does not relates to the interest rate. Because provision of large amounts of funds is riskier for the lenders, plus there are many other factors like duration of loan, profitability, etc that measures the creditworthiness of the client which tells us whether or not the client is able to payback the loan along with its interest or not. So the statement is false.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The business demand for funds resulting from short-term investments is inversely related to the number of projects implemented and ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Look up the term "disintermediation. " Then, think about how technology is affecting B2B sales. Is disintermediation occurring? Be concise, specific and don't just offer your opinion, but try to present some facts to support your stance.
Answers (1)
Which of the following ethical theories is adopted by a company that strives to act as ethically as possible, even at the expense of some additional profits, as long as the business remains profitable? a. The maximizing profits theory b.
Answers (1)
An internal control system consists of the policies and procedures managers use to
Answers (1)
Which of these statements about cycle inventory is BEST? A. Cycle inventory exists to avoid customer service problems. B. Cycle inventory is used to compensate for cycles in supply or demand. C.
Answers (1)
Which of the following is an example of a cost that varies in total as the number of units produced changes? a. property taxes on factory buildings b. direct materials cost c. straight-line depreciation on factory equipment d.
Answers (2)
New Questions in Business
Hornberger, Inc. recently paid a dividend of $2.00 per share. The next dividend is expected to be $2.05 per share. Hornberger has a return on equity of 11.00%. What percentage of its earnings does Hornberger plow back into the firm?
Answers (1)
A tip of $10 is best for which kind of service? A. a mover who delivers furniture to your new home B. a valet who parks your car at a restaurant C. a waiter at a fast-food restaurant
Answers (2)
Sunland Company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production Division.
Answers (1)
Adamson Company manufactures four lines of garden tools. As a result of an activity analysis, the accounting department has identified eight activity cost pools.
Answers (1)
Compute the 2019 Federal income tax liability and the marginal and effective tax rates in each of the following independent cases. Click here to access the 2019 tax rate schedule. If required, round the tax liability the nearest dollar.
Answers (1)
Home » Business » The business demand for funds resulting from short-term investments is inversely related to the number of projects implemented and inversely related to the interest rate. a. True b. False
Sign Up Forgot Password?