Determine which of the following correctly refers to the sources of loanable funds. I. Household savings; II. Changes in money supply; III. Government budget surplus; IV. Dishoarding

1. I and II
2. I, II and III
3. I, II and IV
4. I, II, III and IV

The total demand for loanable funds illustrated in Figure 13.6 includes a section that is vertical. Which of the following provides the best explanation for this phenomenon?

1. Household sector supply of loanable funds is related to the level of interest rates.
2. Business sector demand for loanable funds is negatively related to interest rates.
3. Business sector demand for loanable funds is positively related to interest rates.
4. Government sector demand for loanable funds is not significantly influenced by interest rate levels

When considering the risk structure of interest rates, the premium above the risk-free rate is primarily:

1. default risk
2. liquidity risk
3. a combination of risks
4. none of the answers provide

The rate of dishoarding/hoarding is a function of:

1. interest rates.
2. the demand for loanable funds.
3. the supply of loanable funds.
4. the demand for loans.