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Which of the following sector(s) would be considered as the direct contribution of housing market to GDP? A

Economics Nov 28, 2020

Which of the following sector(s) would be considered as the direct contribution of housing market to GDP? A. Rental income from leasing the property B. Wealth effect which induces more consumption C. Business service from mortgage loan D. A&C E. None of the above 4. Which of the following is an example(s) of direct finance? A. A new company raise funds of $200,000,000 for its new factory from the stock market B. Arhpita borrows $30,000 term loan from one bank for his PAD game egg-drawi C. A company finances an investment project with a syndicate loan of $300,000,00 borrowed from multiple banks D. A&B E. None of the above

Expert Solution

The D option is the correct option i .e A & C

Explaination :-Rental income from leasing property and the business services from the mortgage loan are the two sectors among the given options which are considered to be the direct contribution to the housing market to GDP .These two are the sectors which ensure a good GDP in housing markets and contributes to the Countries GDP significantly in the housing Market .

Answer:4

The A option is the correct

Explaination :-

Fund raised from the stock market is the direct finance by the company as it is raised from the capital market Directly

Whereas arphita borrrows term loan $ 30000 from the bank for his game egg drawi is the indrirect finance for her as the finance for by the bank is done indirectly . The finance from the bank is done of the money of the investors for which bank act as financial intermidiatory ..give fund of investors on interest to borrower and depositors for their money and capital of the investors are provided to the borrowers so it is indurectly financed hence Option B, C,D are false incorrect

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