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An economic unit having access of funds and wants to lend his funds
Yasmine Welch
Wiki User
∙ 13y agoSurplus units are individuals, businesses or governments who have excess unspent funds during a given period of time; consequently they are interested in lending thesfunds. On the other hand deficit units are individuals, businesses or governments who have spending plans in excess of their income; consequently they are interested in borrowing funds.
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Does China have a trade surplus or a trade deficit?
surplus Quantify the surplus amount as in March 2011
Which causes the price of grain from the plains to fall?
A surplus in crops
How are consumer surplus and producer surplus measured?
Consumer surplus and producer surplus are measured using the price applied. Consumer surplus is when a consumer pays a less amount than expected while producer surplus is when a product fetches more money that expected.
How consumers surplus is converted into producer surplus and vice versa in different market structure?
Once the supply is decreased, consumer surplus will decrease. Producer surplus will decrease as well because neither is at the equillibrium. There will be a surplus leftover after the price increases. Once the supply is decreased, consumer surplus will decrease. Producer surplus will decrease as well because neither is at the equillibrium. There will be a surplus leftover after the price increases.
What happens to surplus when revenue increases?
the customer surplus increase
When units manufactured exceeds units sold?
Then you have a surplus.
What is the basic function of financial intermediaries is to obtain funds from surplus units?
Channels Funds: The financial intermediary provides a place where surplus units can deposit their excess funds with confidence. The financial intermediaries have expert knowledge that ensures that transaction costs of such trade are minimised. Because the financial intermediaries receive deposits from a large customer base they can aggregate these savings and make them available to suitable deficit units as required. Maturity transformation: Many deficit units want to borrow for a long period of time whereas many surplus units don't want to tie up their money for such a long period of time. Financial intermediaries accept deposits daily so if someone wants to borrow for 10 years they can do so, whereas the surplus units don't have to deposit for the 10 years. Because of the daily business of accepting funds, there is a rolling over of new deposits so that there are sufficient funds to enable surplus units to withdraw their funds as they wish. Maturity transformation is the ability to turn short-term deposits into longer term loans. Risk Transformation: Where a surplus unit may be unwilling to lend their money for fear of default, a financial intermediary can spread such risk by virtue of the diversity of the spectrum of its activities. By having a large number of borrowers, all screened, any defaults which may occur can be absorbed by the return on all the successful loans
What is concentration theory in tax shifting?
Concentration theory in tax shifting refers to the idea that businesses may pass on the burden of a tax to consumers in the form of higher prices. The theory suggests that the extent to which businesses can shift the tax burden to consumers depends on the market structure and the elasticity of demand. If the demand for the product is inelastic, businesses are more likely to pass on the tax burden to consumers.
What is the acronym of surplus?
surplus
Does China have a trade surplus or a trade deficit?
surplus Quantify the surplus amount as in March 2011
What is landform of surplus farming?
Surplus farming is not a landform. A surplus is a quantity greater than required, it is possible to have a surplus from any fertile ground.
Distinguish between domestic and international finance?
Finance is the process of transferring fund from surplus economic unit to deficit economic unit. Domestic finance is the process of transferring fund from surplus economic unit to deficit economic unit within a country. And International finance is the process of transferring fund from surplus economic unit to deficit economic unit when any of these units is located outside a national country.
Is surplus a homophone?
Yes, "surplus" is a homophone. The word "surplus" sounds the same as "surplice" when pronounced, but they have different meanings and spellings.
What is the analogy of surplus?
SURRENDER : OPPOSITION :: surplus :
Which causes the price of grain from the plains to fall?
A surplus in crops
How are consumer surplus and producer surplus measured?
Consumer surplus and producer surplus are measured using the price applied. Consumer surplus is when a consumer pays a less amount than expected while producer surplus is when a product fetches more money that expected.
How consumers surplus is converted into producer surplus and vice versa in different market structure?
Once the supply is decreased, consumer surplus will decrease. Producer surplus will decrease as well because neither is at the equillibrium. There will be a surplus leftover after the price increases. Once the supply is decreased, consumer surplus will decrease. Producer surplus will decrease as well because neither is at the equillibrium. There will be a surplus leftover after the price increases.
