According to --------- theory of interest, the rate of Interest is the price of credit which is determined by the demand and supply for loanable funds.

Related MCQs

• If savers decide to save more, ceteris paribus, the loanable funds theory predicts:
• In the loanable fund’s theory of interest determination, an increase in the productivity of capital equipment should lead to:
• Loanable Fund theory is also known as-----------
• Using a supply and demand framework, what is likely to happen to share prices in general if the central bank raises interest rates in response to a fall in the exchange rate?
• In borrowing and lending of federal funds, the federal funds rate is result of function between
• In borrowing and lending of federal funds, federal funds rate is result of function between
• A bond whose coupon rate is below the current market rate of interest will have a price:
• Using a supply and demand framework, what is likely to happen to share prices in general if the central bank unexpectedly raises interest rates?
• A large number (about 25%) of long-term mutual funds are _____________ funds, buying securities in proportions similar to those of a major stock index.
• Business finance companies provide specialized forms of credit to businesses by making loans and purchasing accounts receivable at a discount; this provision of credit is called