What Was the Decline in the Value of Mutual Funds

question 47

Multiple Choice

What was the decline in the value of mutual funds held by households during the depths of the financial crisis, between the third quarter of 2008 and the first quarter of 2009

• A)$2 million
• B)$2 billion
• C)$200 billion
• D)$2 trillion

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Definitions:

Loanable Funds

Refers to the funds available for borrowing in the financial markets, determined by the savings of households and organizations.

Public Debt

The total amount of money owed by the government to creditors, often as a result of borrowing to finance public spending.

Loanable Funds

The market where savers supply funds to borrowers, typically facilitated through financial institutions, influencing interest rates.

Interest Rate

The cost of borrowing money expressed as a percentage of the total amount loaned, paid by the borrower for the use of funds.