If People Decide That Some Country Is Now a More

question 6

Multiple Choice

If people decide that some country is now a more risky place to keep their saving,then at the original interest rate in that country there is a

• A)surplus of loanable funds,so the interest rate increases.
• B)surplus of loanable funds,so the interest rate decreases.
• C)shortage of loanable funds,so the interest rate increases.
• D)shortage of loanable funds,so the interest rate decreases.

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Definitions:

Legally Sufficient Consideration

A value or benefit that is recognized by law, which is exchanged between parties as part of a contract.

Legally Sufficient

This refers to a condition or document meeting all legal requirements and standards to be considered valid or enforceable.

Consideration

Consideration in contract law refers to something of value promised to another when making a contract, which can be a service, money, or an object.

Bilateral Contract

A type of contract involving two parties where each party makes a promise or set of promises to the other.