A Higher Interest Rate Makes _____ Less Attractive

question 152

Short Answer

A higher interest rate makes _____ less attractive. Therefore the quantity of loanable funds demanded decreases.

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Definitions:

Intermediaries

Entities that act as a middleman between two parties in a financial transaction, such as brokers, agents, and dealers.

Banks

Financial institutions licensed to receive deposits and make loans, offering various other services like wealth management, currency exchange, and safe deposit boxes.

Transactions

In computing and databases, a series of operations performed as a single logical unit of work, often required to be atomic, consistent, isolated, and durable (ACID).

Capillaries

The smallest blood vessels in the body's circulatory system, connecting arterioles and venules, where gas, nutrient, and waste exchange occur.