Use the Following to Answer Questions

question 398

Multiple Choice

Use the following to answer questions:
Figure: International Capital Flows
-(Figure: International Capital Flows) Look at the figure International Capital Flows. At an interest rate of 4%, the quantity of loanable funds demanded by British borrowers is _____ the quantity of loanable funds supplied by British lenders.

• A)greater than
• B)less than
• C)equal to
• D)not related to

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Definitions:

Privately-Held Firms

Businesses whose ownership is private, meaning their shares are not traded on public stock exchanges.

Securities

Financial instruments that represent ownership positions in corporations (stocks), creditor relationships with corporations or governmental bodies (bonds), or rights to ownership as represented by an option.

General Public

Refers to the broader community or populace that is not specifically involved with a particular area of interest or occupation.

Money Market Securities

Short-term financial instruments, typically with high liquidity and very low risk, such as Treasury bills and commercial paper.