Which of the Following Counts as Part of the Supply

question 113

Multiple Choice

Which of the following counts as part of the supply of loanable funds?

• A)bank deposits and purchases of bonds
• B)bank deposits but not purchases of bonds
• C)purchases of bonds but not bank deposits
• D)neither purchases of bonds nor bank deposits

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Definitions:

Lead

The initiation or start of a project or process, or the advantage or interval by which someone or something is ahead in a competition or race.

Lag

The time delay between a cause and its observable effect, often used in economics, technology, and signal processing contexts.

Straddle

In finance, a strategy involving the purchase or sale of both a call and a put option on the same asset, with the same expiration date and strike price, to profit from a significant price movement in either direction.

Bottlenecks

Points of congestion or obstruction in a system that significantly delay the process flow or reduce the overall system's performance.