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MCQ 11: According to loanable funding theory, the net suppliers of funds are:

  1. insurance companies
  2. government
  3. corporations
  4. households

MCQ 12: The funds provided by the suppliers of the funds in the financial markets are classified as:

  1. compounded funds
  2. savings funds
  3. supply of loan-able funds
  4. demand of loan-able funds

MCQ 13: If there is an improve in economic condition in foreign countries, the local community of investors start:

  1. investing abroad
  2. investing in domestic markets
  3. increase in sovereign risk
  4. increase in country risk

MCQ 14: The participants of financial system reduce the demand for their funds if the economic growth in:

  1. domestic market is stagnant
  2. domestic market is not stagnant
  3. global market is stagnant
  4. global market is not stagnant

MCQ 15: The equilibrium interest rate increases and the economic conditions decreases then supply curve must shift to:

  1. down and to the left
  2. down and to the right
  3. up and to the left
  4. up and to the right

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