Loanable Funds Demand MCQ (Multiple Choice Questions) PDF Download

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

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

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

The sum of past deficit of budget if accumulated is considered as

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

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