Demand for a country’s financial assets leads to demand for its currency.

Roderick received a $100 savings bond for his graduation. The bond pays $100 at maturity, which is in five years. If the interest rate is 6%, the bond has a present value of $90.09

Indicate whether the statement is true or false

A ceiling on interest rates is likely to lead to

A. an increase in lending activity. B. more rapid capital formation by business. C. increases in hiring of labor. D. a shortage of loanable funds.