What Is the Variable That Links the Loanable Funds Market

question 119

Multiple Choice

What is the variable that links the loanable funds market and the foreign-currency exchange market?

• A) net capital outflow
• B) national saving
• C) exports
• D) imports

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Definitions:

Portfolio Weight

The percentage composition of a particular holding in comparison to the total investment amount.

Portfolio Weight

The percentage composition of a particular holding in comparison to the total value of the investment portfolio.

Market Risk Premium

The incremental profit expected by an investor when they decide to hold a market portfolio with risk rather than secure, riskless assets.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by Treasury bills, serving as a benchmark for assessing the risk and return of other investments.