Loanable Funds Demand Multiple Choice Questions with Answers – PDF Download

MCQ 1: When interest rate is lower than equilibrium rate of borrowing loanable funds, then the financial system has:

1. surplus of funds
2. deficit of funds
3. short-term funds
4. long-term funds

MCQ 2: To create the situation with no shortage of funds, the relationship between funds supplied and the funds demanded must have:

1. Two way relationship
2. One way relationship
3. direct relationship
4. inverse relationship

MCQ 3: When interest rate is higher than equilibrium rate of borrowing loanable funds then the financial system has:

1. short-term funds
2. long-term funds
3. surplus of funds
4. deficit of funds

MCQ 4: The sum of past deficit of budget if accumulated is considered as:

1. global surplus
2. national debt
3. international debt
4. global debt

MCQ 5: When the business companies started investing with the funds generated internally is a point which shows that:

1. cost of loanable funds is high
2. cost of loanable fund is low
3. equilibrium is zero
4. equilibrium is negative