E] D 2. What is the role of the government in the Ioanable funds market? 0 The government sets most interest rates. 0 The government loans more than it borrows. O The government borrows more than it loans. 0 The government is represented by the supply curve. O The government earns more interest on treasury securities when interest rates rise. [:l D 4. For a bond, the amount that must be repaid on the maturity date is called the O equity O ownership share 0 net value 0 cash value 0 par value [:l D 5. Darrell owns a large corporation that is building a new shopping mall in Winston-Salem, North Carolina, and will likely need to borrow funds. From this information, we can tell that the corporation 0 is part of the supply curve in the market for loanable funds. 0 pays a higher rate of interest than most borrowers. O is part of the demand curve in the market for loanable funds. 0 pays a lower rate of interest than most borrowers. 0 would itself loan its prots to foreign entities. [:l D 7. If the federal government taxes the interest rate that savers receive, 0 the rate of return to savers increases because of transfer payments, and people save more. 0 the demand for loanable funds increases. 0 the supply of loanable funds increases. O the supply of loanable funds decreases. O corporations are more willing to borrow. 8. The nominal interest rate is the rate of interest charged to most large commercial borrowers. O equal to the real interest rate minus the inflation rate. the rate charged on loans for automobiles and other personal loans but not the rate charged on home loans. the interest rate that is not corrected for inflation. O the interest rate that is corrected for inflation