The Intersection of the Demand for Loanable Funds and the Supply

question 105

Multiple Choice

The intersection of the demand for loanable funds and the supply of loanable funds determines the

• A)Real interest rate.
• B)Par value.
• C)Prevailing interest rate.
• D)Price ÷ earnings ratio.

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Definitions:

Price Floor

A price floor is a government-imposed limit on how low a price can be charged for a commodity, typically implemented to protect producers' income.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specific time period.

Quantity Demanded

The specific amount of a good or service that consumers are willing to buy at a given price.

Quota Rent

A financial benefit obtained by importers who receive a license under a quota system which limits the quantity of goods that can be imported.