The Term 'Loanable Funds' Refers To

question 46

Multiple Choice

The term 'loanable funds' refers to:

• A) only those funds loaned to banks by the central bank.
• B) only those funds loaned by one bank to another bank.
• C) only those funds loaned to banks by the public.
• D) all those funds changing hands between the lenders and borrowers in the financial markets.

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Definitions:

Illegality of Object

The principle that a contract is void if it involves actions or outcomes that are illegal or against public policy.

Cocaine

Cocaine is a powerful stimulant drug derived from the leaves of the coca plant, often used recreationally for its euphoric effects but illegal in many jurisdictions.

Rescission

The act of cancelling a contract, returning all parties to their pre-contractual state, often due to mistakes, fraud, or misrepresentation.

Fraudulent Misrepresentation

False statements or claims made deceitfully to induce another party into a contract, leading to harm or loss.