Accounting and Finance Questions

In economy, the currency value depends on imports and exports, inflation, employment, interest rates, growth rate, trade deficit, performance of equity markets, foreign exchange reserves, macroeconomic policies, foreign investment inflows, banking capital, commodity prices.

Asset means anything that can be converted into cash. Here in banks, the loans disbursed by Bank to its customers is considered as assets because when they are cleared by them, then they are directly converted to cash.

The principle of diversification tells us that spreading an investment across many diverse assets will eliminate some of the total risk.

Interest is usually associated with notes receivable.

Open Market Operations (OMO) refer to the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system.

The fixed cost per unit decreases when volume increases is the correct statement regarding fixed costs.

Other things the same, when the interest rate rises people would want to lend more, making the quantity of loanable funds supplied increase.