All of the following take place in the direct finance market except
A) ownership in corporations is sold in the form of common stock.
B) ownership in corporations is sold in the form of preferred stock.
C) corporate bonds are sold to savers.
D) deposits from savers are accumulated and loans made to borrowers.
D
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Using the market for loanable funds, which of the following has the potential to raise the real interest rate?
A) an increase in the supply of loanable funds B) an increase in the quantity of loanable funds demanded C) an increase in the quantity of loanable funds supplied D) an increase in the demand for loanable funds
If real estate prices are expected to drop, all else equal, the demand for bonds ________ and the interest rate_______
A) increases; rises B) increases; falls C) decreases; rises D) decreases; falls