Which of the Following Is True in the Context of the Loanable

question 82

Multiple Choice

Which of the following is true in the context of the loanable funds market?

• A)Savers are the suppliers of loanable funds, and borrowers are the demanders of loanable funds.
• B)The supply of loanable funds curve slopes downward, and the demand for loanable funds curve slopes upward.
• C)The supply of loanable funds curve reflects the negative relation between the market rate of interest and the quantity of savings.
• D)Households play the role of financial intermediaries.
• E)Banks pay a higher interest rate on consumer savings than what they could earn by lending these funds out.

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Definitions:

Fixed Overhead Budget Variance

The difference between the budgeted fixed overhead costs and the actual fixed overhead incurred.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums, providing predictability to a business's expenses.

Labour Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain level of output, valued at the standard labour rate.

Credit Balance

An account balance that shows money owed to the account holder, often indicating a creditor position in financial records.