If the Quantity of Loanable Funds Supplied Is Greater Than

question 107

Multiple Choice

If the quantity of loanable funds supplied is greater than the quantity demanded, what are the excess funds used for?

• A) Canadians to purchase foreign assets
• B) Canadians to purchase domestic investments
• C) foreigners to purchase Canadian assets
• D) foreigners to purchase Canadian goods

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Definitions:

Total Assets

The sum of all current and non-current assets that a company owns, used in evaluating the company's financial strength.

Cash Flow

The total amount of money being transferred into and out of a business, affecting the company's liquidity.

Investment Activities

Financial actions related to the acquisition and disposal of long-term assets and other investments not considered cash equivalents.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the company.