The demand for loanable funds increases when the expected rate of return increases.
Answer the following statement true (T) or false (F)
True
The higher the expected return or the lower the cost of funds, the greater the amount of loanable funds demanded.
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In the figure above, the Lorenz curve that shows the richest 20 percent of households receiving 80 percent of all income is
A) curve A. B) curve B. C) curve C. D) curve D.
For the settlement of futures contracts, the clearing corporation requires that a margin be placed with the corporation by
A) the short position only. B) the long position only. C) the short and the long in all contracts. D) the short and the long only in extraordinary circumstances.
Which of the following is not an interest-earning asset of commercial banks?
a. Required reserves. b. Securities. c. Loans. d. All of these are interest-earning assets of commercial banks.
The time value of the option can best be defined as
A. the fee earned for the potential benefits from buying the option. B. the commission earned by a broker. C. the service fee charged by the SEC for regulating the option market. D. the fee paid for the potential benefits from buying an option (excluding its intrinsic value).