Question
1. The exchange of secondhand securities _____. takes place in an oligopolistic market does not provide funds to the firm that issued those securities includes
1.The exchange of secondhand securities _____.
takes place in an oligopolistic market
does not provide funds to the firm that issued those securities
includes the initial sale when securities are issued by a firm
involves very few institutional investors
lowers the liquidity of the securities
2.The term structure of interest rates describes the relationship between the interest rate charged and the _____.
duration of a loan
amount of a loan
riskiness of a borrower
credit history of a borrower
age of a borrower
3.Which of the following is true in the context of the loanable funds market?
Savers are the suppliers of loanable funds, and borrowers are the demanders of loanable funds.
The supply of loanable funds curve slopes downward, and the demand for loanable funds curve slopes upward.
The supply of loanable funds curve reflects the negative relation between the market rate of interest and the quantity of savings.
Households play the role of financial intermediaries.
Banks pay a higher interest rate on consumer savings than what they could earn by lending these funds out.
4.Everything else remaining unchanged, if consumers decide to increase their rate of saving the _____.
supply of loanable funds will decrease
supply of loanable funds will increase
demand for loanable funds will decrease
quantity of loanable funds demanded will increase
quantity of loanable funds supplied will increase
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