As a Result of More Favorable Economic Conditions, There Is

question 42

Multiple Choice

As a result of more favorable economic conditions, there is a(n) ____ demand for loanable funds, causing an ____ shift in the demand curve.

• A)decreased; inward
• B)decreased; outward
• C)increased; outward
• D)increased; inward

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Definitions:

Portfolio

An assortment of financial assets including stocks, bonds, commodities, currency, and equivalents, along with closed-end funds and exchange-traded funds (ETFs).

Securities

Financial vehicles that embody a part-ownership in a corporation traded on the stock market, a credit relationship with governmental organizations or companies (bonds), or the potential ownership conferred by holding options.

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing at par, offering a return to investors.

Dividend

A portion of a company's earnings distributed to its shareholders, usually in the form of cash or additional stock.