Which of the Following Statements Is False

question 50

Multiple Choice

Which of the following statements is false?

• A)The quantity supplied of loanable funds and the interest rate are inversely related.
• B)The supply curve of loanable funds is upward sloping.
• C)One of the reasons the federal government demands loanable funds is that it needs to finance budget deficits.
• D)Savers are people who consume less than their current income.

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Definitions:

Compound-Interest

A method of calculating interest where the amount is based on the initial principal and the interest that has been accumulated in past periods.

Compounded Quarterly

Involves calculating interest on an investment by adding the accrued interest back into the principal at the end of each quarter, effectively earning interest on interest.

GIC

Guaranteed Investment Certificate, a Canadian investment that offers a guaranteed rate of return over a fixed period, typically without the risk of losing the principal invested.

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns.