The equilibrium in the market for loanable funds is:
A. where the amount being saved is enough for banks to cover required reserves.
B. at the price at which the quantity supplied is slightly greater than quantity demanded.
C. where the amount being borrowed and the amount being saved is the same.
D. at the interest rate set by the Fed.
Answer: C
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A) electing the board of directors. B) appointing day-to-day managers. C) diversifying their portfolios. D) having lots of bonds in their portfolios.
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Fill in the blank(s) with the appropriate word(s).