A Capital Sum of Money Due as a Debt or Used

question 14

Short Answer

A capital sum of money due as a debt or used as a fund for which interest is either charged or paid is called the __________.

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Definitions:

Loanable Funds Traded

The marketplace for borrowing and lending, where loanable funds are exchanged, often involving financial institutions, with rates influenced by supply and demand.

Interest Rate

Borrowers face a cost, expressed as a percentage of the fundamental amount, for the privilege of using lenders' assets.

Supply of Loanable Funds

The total amount of funds available for borrowing in the economy, influenced by savings, government policies, and financial institutions.

Shift of the Supply Curve

A movement of the entire supply curve to the left or right, caused by a change in a factor other than the price of the good or service itself, indicating a change in the quantity supplied at every price.