10. Figure: The Market for Loanable Funds IIReference: Ref 10-13(Figure: The Market for Loanable Funds II) Look at the figure The Market for LoanableFunds II. Other things being equal, if there is an increase in the interest rate above 8%, _____ quantity of loanable funds will be demanded.
11. Table: Investment ProjectsReference: Ref 10-14(Table: Investment Projects) Look at the table Investment Projects. If the market interest rate declines from 15% to 13%, then the amount of investment demanded will increase by:
12. A business will be likely to borrow to fund projects if:
13. The Fisher effect states that:
14. An amount that would equal a particular future value if deposited today at the prevailing interest rate is the:
15. The present value of a $110 payment in one year, given an annual 10% interest rate, is:
16. Suppose that Jim just got a $20,000 loan from his credit union to buy a new car. The loan is a _____ for Jim and a _____ for the credit union.
17. An important advantage of bonds as a financial asset is that they:
18. One reason financial institutions become very large is to: