When interest rate is higher than equilibrium rate of borrowing loanable funds then financial system has

A short-term funds
B long-term funds
C surplus of funds
D deficit of funds

Correct Answer: surplus of funds

When interest rate is higher than equilibrium rate of borrowing loanable funds then financial system has surplus of funds. The demand for loanable funds represents the behavior of borrowers and the quantity of loans demanded. The lower the interest rate, the less expensive it is to borrow.
Bissoy MCQ
#Management #International Finance And Treasury

Related Questions

When interest rate is lower than equilibrium rate of borrowing loanable funds then financial system has
A surplus of funds
B deficit of funds
C short-term funds
D long-term funds
Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called.
A commodity markets
B fund-available markets
C derivative exchange markets
D financial markets
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A supply of loan-able funds
B demand of loan-able funds
C compounded funds
D savings funds
Type of financial markets in which corporations issues new funds to raise funds is classified as
A flow market
B primary markets
C secondary markets
D funding markets
Minimum loanable fund required to get registration for MFIs in Bangladesh according to MRA law:
A 40 lakh
Arman wanted to have Tk. 39,200 as interest after 5 years. He has invested an amount in an account for 1 year at 8% interest rate. From the 2nd year, he invested the principal amount in another account offering 10% interest for 3 years. At the beginning of the fifth year he invested the Principal amount in another account at the rate of 11%. What was the principal amount? (assume simple interest rate)
A Tk. 50,000
B Tk. 80,000
C Tk. 70,000
D Tk. 90,000
E None of them
What is defined as a financial security note issued by business or corporation and by the government as a means of borrowing long-term fund?
A T-bills
B Securities
C Bond
D Bank notes
The interest rate charged for inter-bank borrowing is called :
A Call money rate
B Bank rate
C Prime rate
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L is older than M and taller than N. O is younger than P, older than N and shorter than Q. R is older than S, younger than N, shorter than S and taller than Q. S is older than L, M, O, P, Q, R and S is necessarily false?
A O is the shortest of the group.
B N is the second tallest of the group.
C L is the tallest of the group.
D Q is the third oldest of the group.
Kalam has invested a part of 10,000 Taka in an account that pays 6% simple interest rate each year and rest of the money in another account that pays 8% simple interest per year. If he has invested the money for 18 months and he has invested the money for 18 months and he earns a total of 1,020 Taka as interest, what is the difference in the amount of the interest earned on both the accounts?
A 40 Taka
B 60 Taka
C 100 Taka
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