Lor's Company has the following items: cash in a checking account, $4,000; cash in a savings account, $6,000; high-grade government securities due in one month (purchased last month), $3,536, accounts receivable, $3,000. How much should appear as Cash and Cash Equivalents on the balance sheet? O A. $13,536 O B. $16,536 O C. $17,136 OD. $6,000

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Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.