Final answer:
The correct accounting for the purchase of land via cash and issuance of shares is to increase the Land account, increase the Common Shares account, and decrease the Cash account. An increase in loans can occur with a rise in demand or supply in the financial market. An increased supply of loans can also lead to lower interest rates.
Step-by-step explanation:
The purchase of land with a combination of cash and issuance of shares would indeed affect several accounts on the company's balance sheet. When a company buys land, it increases its Land (asset) account. If part of the payment for the land is through the issuance of shares, this would increase the Common Shares (equity) account. However, because there is also a cash component, the Cash (asset) account would decrease due to the outflow of funds.
Therefore, the correct answer is: d) increase in Land, increase in Common Shares, decrease in Cash.
As for the question in reference, which discusses changes in the financial market, an increase in the number of loans made and received could be brought about by either a rise in the demand for loans or a rise in the supply of loans. Both factors can lead to an increase in loan transactions, as more demand prompts lenders to provide more loans, and increased supply means there is more availability of capital to lend.
However, if the supply of loans increases without a corresponding rise in demand, this could also lead to a decline in interest rates, as lenders might lower rates to encourage borrowing.