A. special provisions
B. liquidity and default risk
C. inflation and real interest arte
D. all of the above
Related Mcqs:
- The special provisions that can have adverse or beneficial effects and are reflected in interest rates do not include _____________?
A. tax-ability
B. covert ability
C. call ability
D. inflation premium - 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 - According to loanable funds theory, the fall in interest rates result into ____________?
A. zero demand of funds
B. equilibrium demands of funds
C. higher demand of funds
D. lower demand of funds - If the risk of financial security increases and the supply curve shifts to the left then the impact on equilibrium of interest rate must ______________?
A. decreases
B. increases
C. positive
D. negative - If the risk of financial security decreases and the supply curve shifts to the right and downwards then the impact on equilibrium of interest rate must ____________?
A. remain constant
B. fluctuate
C. decreases
D. increases - When interest rate is higher than equilibrium rate of borrowing loanable funds then the financial system has __________?
A. short-term funds
B. long-term funds
C. surplus of funds
D. deficit of funds - If the equilibrium interest rate decreases with respect to decrease in interest rate, then the movement along the supply of funds curve is __________?
A. upside movement
B. downside movement
C. shift left
D. shift right - The interest rate considering compounding of interest rate and is earned in 12 months, is considered as _____________?
A. effective annual return
B. ineffective annual return
C. decrease in return
D. increase in return - If the equilibrium interest rate increases with respect to increase in interest rate, then the movement along the supply of funds curve show a/an __________?
A. shift left
B. shift right
C. upside movement
D. downside movement - The funds demand which is pushed by users of funds in the financial markets are classified as _________?
A. supply of loan-able funds
B. demand of loan-able funds
C. compounded funds
D. savings funds
