Supply of Loanable Fund Multiple Choice Questions with Answers – PDF Download

MCQ 1: The equilibrium interest rate decreases and the economic conditions increases then supply curve must shift to:

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

MCQ 2: The loans for education and medical is classified as loans for:

1. equilibrium goods
2. non-equilibrium goods
3. durable goods
4. non-durable goods

MCQ 3: The interest rate equilibrium is increased and the supply curve of funds shifts to the left or upward is the result of:

1. increase in future value
2. decrease in future value
3. increase in total wealth
4. decrease in total wealth

MCQ 4: According to demand for funds curve, the demand curve shifts to right if there is an increase in:

1. equilibrium demand
2. equilibrium interest rate
3. equilibrium supply
4. equilibrium savings

MCQ 5: For the other non-price conditions, the decrease in equilibrium interest rate leads to:

1. increase restrictiveness
2. decrease restrictiveness
3. zero restrictiveness
4. negative restriction