If the Quantity of Loanable Funds Supplied Is Greater Than

question 107

Multiple Choice

If the quantity of loanable funds supplied is greater than the quantity demanded, what are the excess funds used for?

• A) Canadians to purchase foreign assets
• B) Canadians to purchase domestic investments
• C) foreigners to purchase Canadian assets
• D) foreigners to purchase Canadian goods

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Definitions:

Consideration

The value (such as money, service, or goods) that is promised by one party to another in exchange for performing or promising to perform an act.

Conditional Acceptance

An agreement to accept an offer based on specific conditions being met.

Equitable Estoppel

A legal doctrine preventing a party from denying or asserting anything to the contrary of what has been established as truth, due to previous actions, conduct, or statements.

Gratuitous Promise

This is a promise made without requiring anything in exchange, often lacking legal enforceability because it lacks consideration.