Define these banking terminologies. Revenue ExpenditureDebt FinancingLine of CreditPrime interest rateInterest expenseNon-operating expensesCapital issueStated interest rateEquity FinancingPar valueIssue datePreferred StockCost of capitalFinancial leverage

The answers are provided below.

Explanation:

Revenue expenditures are referred to as ongoing operating expenses. Examples of revenue expenditures are the expenses on repairs and maintenance, general expenses and administrative expenses.

Debt financing is when a firm raises money for capital expenditure or working capital through the sale of debt instruments to individuals or investors.

A line of credit is a credit is given by a bank or other financial institution to an individual, firm or government to a customer to enable the customer draw on the credit facility when fund is needed by the customer.

Prime interest rate is an interest rate given by banks to their customers with good credit when they borrow money from the bank.

Interest expense is the cost of borrowing money. The interest expense is the price that is charged by a lender to a borrower for using the lender's money.

A non-operating expense is an expense that is incurred by a company that does not relate to its main production activity e.g. interest payments.

Capital expenditure is the money that is spent by a business on acquiring fixed assets, such as buildings, land, and equipment.

Collateral bond is the act of borrowing money in which the borrower offers a property or an asset as a security measure for the lender. When the borrower doesn't pay the debt on time, the lender will acquire the asset that the borrower used as collateral.

A bond, also called a fixed-income security, is a debt instrument that is created to raise capital. Bonds are loan agreements between an investor and the bond issuer, in which the bond issuer is expected to pay a certain amount of money at a future date.

Stated interest rate is the amount of interest due at a certain period, and it is the proportion of the amount borrowed, lent, or deposited.

Equity financing is the process of raising capital by selling shares to the public.

Par value is the face value of a bond and it means how much a bond is worth at the time the bond will mature.

Issue date is the date on which a government or company makes new issue of securities to the public.

Preferred cost is also called the preference shares and it is the stock whereby the holder is entitled to a fixed dividend, whereby the payment is more prioritize than the ordinary share dividend.

The cost of capital is the cost of the fund of a company. It is the rate of return that could have been gotten if the money has been put into another investment with equal risk. Cost of capital is used to evaluate the new projects of a company.

Financial leverage is using debt to buy more assets. Financial leverage is used to increase the return on equity. An excessive amount of financial leverage can increase the risk of failure, because it becomes more difficult to repay back the debt.

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.