A. cost of loanable funds is high
B. cost of loanable fund is low
C. equilibrium is zero
D. equilibrium is negative
Related Mcqs:
- To create the situation with no shortage of funds, the relationship between funds supplied and the funds demanded must have __________?
A. Two way relationship
B. One way relationship
C. direct relationship
D. inverse relationship - The funds provided by the suppliers of the funds in the financial markets are classified as ____________?
A. compounded funds
B. savings funds
C. supply of loan-able funds
D. demand of loan-able funds - 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 - 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 - The interest rate equilibrium is increased and the supply curve of funds shifts to the left or upward is the result of ____________?
A. increase in future value
B. decrease in future value
C. increase in total wealth
D. decrease in total wealth - 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 - According to loanable funding theory, the net suppliers of funds are ____________?
A. insurance companies
B. government
C. corporations
D. households - The participants of financial system reduce the demand for their funds if the economic growth in _____________?
A. domestic market is stagnant
B. domestic market is not stagnant
C. global market is stagnant
D. global market is not stagnant - 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 - If the demand of loanable demands decrease then the borrowing cost of funds is ________?
A. upside
B. lower
C. higher
D. zero
