Question 5 (1 point) The supply curve for loanable funds represents _____ and is

Question

Question 5 (1 point)

The supply curve for loanable funds represents _____ and is _____.

Question 5 options:

a)

b)

c)

d)

Question 6 (1 point)

Which source of short-term borrowing charges the highest average interest rates on unpaid balances?

Question 6 options:

a)

b)

c)

d)

Question 7 (1 point)

As the real interest rate falls:

Question 7 options:

a)

b)

c)

d)

Question 8 (1 point)

Barter as a system tends to work only:

Question 8 options:

a)

b)

c)

d)

Question 9 (1 point)

According to the trade-off between risk and return, which asset would likely have the highest average return on investment over a 20-year period?

Question 9 options:

a)

b)

c)

d)

Question 10 (1 point)

When investors wish to increase their investment activities by using the market for loanable funds:

Question 10 options:

a)

b)

c)

d)

Question 11 (1 point)

Barter:

Question 11 options:

a)

b)

c)

d)

Question 12 (1 point)

What are the primary functions of money?

Question 12 options:

a)

b)

c)

d)

Question 13 (1 point)

M1 is the most _____ of all assets because as a medium of exchange, it requires no conversion.

Question 13 options:

a)

b)

c)

d)

Question 14 (1 point)

Checking account balances are:

Question 14 options:

a)

b)

c)

d)

a)

investors; upward sloping

b)

investors; vertical

c)

savers; upward sloping

d)

savers; vertical

Explanation / Answer

Ans)
5.
c)
savers; upward sloping
Savers represent the suppliers of the funds and with an increase in interest rates, more funds are supplied.
6.
c)
ordinary credit cards
Ordinary credit cards usually have the highest average outstanding balance.
7.
b)
the quantity demanded of loanable funds rises.
The interest rates and the quantity of loanable funds demanded are inversely related.
8.
b)
in primitive economies with little product variety.
This is because the barter requires a double coincidence of wants.

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