(Financial Institutions and Markets)

According to the loanable funds theory, specify if the following statements are

considered as True or False statements. (No need for graphs)

1. The increase in investment risk leads to decrease in equilibrium interest rate ( )
2. The decrease in restrictive covenants leads to decrease in demand for loans ( )
3. The increase in economic growth leads to increase in interest rate ( )
4. The decrease in near term spending needs leads to increase in supply ( )
5. The decrease in utility driven from assets leads to decrease in demand for loans ( )
6. The increase in income leads to increase in supply ( )