Financial Markets and Funds
According to loanable funding theory, the net suppliers of funds are
insurance companies
government
corporations
households
households
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The curve representing demand of the funds shifts to the left if economic growth inA. global market is stagnant
B. global market is not stagnant
C. domestic market is stagnant
D. domestic market is not stagnant
The interest rate equilibrium is decreased and the supply curve of funds shift to the right is the result of
A. increase in total wealth
B. decrease in total wealth
C. increase in future value
D. decrease in future value
The value which converts series of equal payments in to the value received at the beginning of investment is classified as
A. decreased value of annuity
B. increased value of annuity
C. present value of annuity
D. future value of annuity
The decrease in present value at decreasing rate only, when there is
A. increase in availability
B. decrease in availability
C. decrease in interest rate
D. increase in interest rate
When the business companies started investing with the funds generated internally is a point which shows that
A. cost of loanable funds is high
B. cost of loanable fund is low
C. equilibrium is zero
D. equilibrium is negative
The suppliers, funds consumers, foreign and government intervening intermediaries are classified as participants of
A. financial markets
B. setting interest arte
C. setting compounding rate
D. setting savings rate
When interest rate is lower than equilibrium rate of borrowing loanable funds, then the financial system has
A. surplus of funds
B. deficit of funds
C. short-term funds
D. long-term funds
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