Question: What are loan able funds? Why do businesses demand loan able funds? Why do households supply loan able funds?

What are loan able funds? Why do businesses demand loan able funds? Why do households supply loan able funds?

Step by Step Solution

★★★★★

3.34 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Loan able funds are the money that households sav... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1347-B-A-A-M-E(992).docx

120 KBs Word File

Students Have Also Explored These Related Micro Economics Questions!

Q:

The structure that requires the largest repayment of principal at maturity is that of a: A. Bullet bond. B. Fully amortized bond. C. Partially amortized bond.

Q:

Three students have each saved $1,000. Each has an investment opportunity in which he or she can invest up to $2,000. Here are the rates of return on the students investment projects: Harry.............

Q:

Use the following graph to answer the questions. a. With the shift in the demand curve for loan able funds, what happens to the equilibrium real interest rate and the equilibrium quantity of loan...

Q:

Suppose the government borrows $20 billion more next year than this year. a. Use a supply-and-demand diagram to analyze this policy. Does the interest rate rise or fall? b. What happens to...

Q:

Suppose the government borrows $20 billion more next year than this year. The following graph shows the market for loan able funds before the additional borrowing for next year. Use the orange fine...

Q:

Multiple Choice Questions 1. Nina wants to buy and operate an ice-cream truck but doesn't have the financial resources to start the business. She borrows $5,000 from her friend Max, to whom she...

Q:

If the aggregate for loan able funds without a corresponding increase in aggregate there will be a shortage of loan able funds. Supply; increase; demand demand; increase; supply demand; decreases;...

Q:

(Study Plan 7.1) Use the following information to work Problems 1 and 2. Michael is an Internet service provider. On December 31, 2009, he bought an existing business with servers and a building...

Q:

Use the following graph to answer the questions. a. Does the shift from S1 to S2 represent an increase or a decrease in the supply of loan able funds? b. With the shift in supply, what happens to the...

Q:

According to the market interest rates are determined by factors that control the supply of and demand for loan able funds. Fisher effect real interest rate loan able funds theory none of the above...

Q:

Why is it important for us to understand how the global system of financial institutions and markets works? ros57395_ch01.qxd 12/21/04 2:45 PM Page 1 Part 1 The Global Financial System in Perspective...

Q:

In our discussion of how the VLR updated the HLR with information about the mobile s current location, what are the advantages and disadvantages of providing the MSRN as opposed to the address of the...

Q:

You are required to visit an industry where job costing is applicable and write a detailed report as per the following instructions: a. Give an introduction about the selected industry. Write about...

Q:

A firm is bidding on a construction project in Brazil. The outcome of the bid will not be known for 3 months. The firm will be paid in Reals in 6 months if they win the bid. The best way for the firm...

Q:

Bobby Murray Chevrolet, Inc., submitted a bid to the Alamance County Board of Education to supply 1,200 school bus chassis to the district. Bobby Murray was awarded the contract and contracted with...

Q:

Assuming that the population is normally distributed, construct a 95% confidence interval estimate for the population mean for each of the following samples: Explain why these two samples produce...

Q:

State (a) A positive economic statement of your choice, and then (b) A normative economic statement relating to your first statement.

Q:

What are the key elements of the scientific method and how does this method relate to economic principles and laws?

Q:

LaTanya Corporation is planning to issue $100,000, seven-year, 8 percent bonds. Interest is payable each December 31. All of the bonds will be sold on January 1, 2011. Required: Compute the issue...

Q:

Assume that you are interested in earning some return on idle balances you usually keep in your checking account and decide to buy some money market mutual funds shares by writing a check. Comment on...

Q:

A monopolist earns $40 million annually and will maintain that level of profit indefinitely, provided that no other firm enters the market. However, if another firm enters the market, the monopolist...

Q:

Consider the following simultaneous move game: a. What is the maximum amount player 1 should be willing to pay for the opportunity to move first instead of moving at the same time as player 2?...

Q:

A firm is considering building a two-way network that links 10 users. The cost of building the network is $6,000. a. How many potential connection services does this network provide? b. If each user...

Q:

Hyperion Inc., currently sells its latest high-speed colour printer, the Hyper 500, for $333. Its cost of goods sold for the Hyper 500 is $190 per unit, and this year's sales (at the current price of...

Q:

solve.............. The patient recovery time from a particular surgical procedure is normally distributed with a mean of 5.9 days and a standard deviation of 1.6 days. What is the median recovery...

Q:

Please show all steps and double check your work! Question 9 1 pts A $1000 par, semiannual-pay bond has a current price of $1,058 has a modified duration of 6.19. What is the dollar value of an 01?...