What is the financial capital market? Who are the suppliers in the market? Who are the demanders?
What will be an ideal response?
The financial capital market is the part of the capital market in which savers and investors interact through intermediaries. Households are the savers and thus are the suppliers in the market. The demanders are firms wishing to borrow funds to purchase new capital.
You might also like to view...
According to the Solow model, a benefit of policies to limit population growth might be ________
A) that smaller families are more likely to contribute to technological advances B) that smaller families have better access to birth control methods and devices C) that smaller families might provide each person a larger share of national income D) that smaller families have less need to save, and so enjoy higher consumption
The market labor supply curve is the
a. vertical sum of the individual labor supply curves b. horizontal sum of the individual labor supply curves c. vertical difference of the individual labor supply curves d. horizontal difference of the individual labor supply curves e. average of the individual labor supply curves
The U.S. income tax is based on the principle of
a. cost of service. b. benefit received. c. ability to pay. d. equality of sacrifice.
Some argue that "financing an investment with your own personal funds is always less expensive than borrowing the funds from a bank because it's an interest-free loan.". To an economist, this argument
a. is true because borrowed funds involve an explicit cost, while use of one's own funds involves only an implicit cost b. ignores the opportunity cost associated with using one's own funds c. is false because the bank can always match the interest rate offered on the loanable funds market d. is true only if the investment generates less revenue than the revenue generated by the interest-bearing deposit in the bank e. ignores the cost of sacrificing present consumption