Which of the Following Would Cause the Quantity of Loanable

question 32

Multiple Choice

Which of the following would cause the quantity of loanable funds supplied to increase?

• A) A decrease in inflationary pressures
• B) An increase in inflationary pressures
• C) An increase in interest rates
• D) A decline in interest rates

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Definitions:

Macroeconomic Risks

Considered broad economic or political uncertainties that could affect the performance of financial markets and investments globally.

Security Selection

The process of choosing individual securities for investment with the goal of achieving the best possible return for a given level of risk.

Passive Strategy

A portfolio decision that avoids any direct or indirect security analysis. See passive management.

Index Funds

Investment funds designed to replicate and track the components of a market index.