José is putting money for college in a savings account. The bank then makes this money available to business borrowers. In essence:
a) José is supplying loanable funds for business investment.
b) José is demanding loanable funds.
c) The interest rates that businesses pay are independent of the actions of suppliers of funds, such as José.
d) Financial markets are not performing the role of an intermediary.
Ans: a) José is supplying loanable funds for business investment.
You might also like to view...
Necessities such as food and clothing tend to have
a. high price elasticities of demand and high income elasticities of demand. b. high price elasticities of demand and low income elasticities of demand. c. low price elasticities of demand and high income elasticities of demand. d. low price elasticities of demand and low income elasticities of demand.
Answer the following statement true (T) or false (F)
1) Human beings consume more both in absolute terms and on a per capita basis than they did 200 years ago. 2) Thomas Malthus argued that increases in living standards tend to reduce birthrates. 3) A total fertility rate of 1.0 is necessary to keep the population constant over time. 4) Most developed countries have fertility rates less than 2.1.