E-PolyLearning

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

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

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

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

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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