13. Interest rates of various loans vary over a wide range due to differences in all of the following, except: A. Borrower characteristicsB. Maturity of the loanC. Loan sizeD. Lender characteristics14. Other things equal, the interest rate on a loan will be smaller: 15. Other things equal, the interest rate on a loan will be larger: 16. Other things equal, the interest rate on a loan will be larger:17. Pure rate of interest refers to the interest rate that: A. Borrowers pay to lenders in their own family or circle of close friendsB. Serves solely as payment to lenders for giving up current use of their fundsC. Is the difference between the actual rate and the theoretical rateD. Measures the compensation to lenders for taking on the risks involved18. The demand curve for loanable funds represents the behavior of: 19. Profit-maximizing businesses will buy more new machinery only if: 3
20. Which factor will decrease the demand for loanable funds? 21. The supply curve for loanable funds is upward-sloping because: A. Lenders are more willing to lend at lower, rather than higher, interest ratesB. Lenders are more willing to lend at higher, rather than lower, interest ratesC. Borrowers are more willing to borrow at lower, rather than higher, interest ratesD. Borrowers are more willing to borrow at higher, rather than lower, interest rates
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