Use the Following to Answer Questions

question 275

Multiple Choice

Use the following to answer questions
Figure: Loanable Funds Market

-(Figure: Loanable Funds Market) Refer to the figure of the loanable funds market.At an interest rate of 3% in this market,there is a _____ of loanable funds of _____.

• A) shortage;$320
• B) surplus;$250
• C) shortage;$250
• D) surplus;$320

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Definitions:

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Liability for Losses

The obligation of an individual or entity to compensate for damages or financial losses incurred by another.

Limited Partner

An investor in a partnership whose liability is limited to the amount of the investment and who does not participate in day-to-day management.

Management Rights

The powers and authority given to managers or executives to make decisions and direct operations within an organization.