| 1. | The equilibrium interest rate decreases and the economic conditions increases then supply curve must shift to |
| a. | up and to the left |
| b. | up and to the right |
| c. | down and to the left |
| d. | down and to the right |
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Answer: (d).down and to the right
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| 2. | The special provisions that can have adverse or beneficial effects and are reflected in interest rates do not include |
| a. | tax-ability |
| b. | covert ability |
| c. | call ability |
| d. | inflation premium |
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Answer: (d).inflation premium
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| 3. | The loan-able funds theory is used to determine |
| a. | savings |
| b. | interest rate |
| c. | future value |
| d. | present value |
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Answer: (b).interest rate
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| 4. | The loans for education and medical is classified as loans for |
| a. | equilibrium goods |
| b. | non-equilibrium goods |
| c. | durable goods |
| d. | non-durable goods |
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Answer: (d).non-durable goods
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| 5. | The interest rate equilibrium is increased and the supply curve of funds shifts to the left or upward is the result of |
| a. | increase in future value |
| b. | decrease in future value |
| c. | increase in total wealth |
| d. | decrease in total wealth |
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Answer: (d).decrease in total wealth
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