1) A shift of the demand curve for loanable funds may occur due to changes in go

Question

1) A shift of the demand curve for loanable funds may occur due to changes in government ___ while a shift of the supply curve of loanable funds may occur due to changes in private ___ . borrowing and investment investment and borrowing borrowing and savings behavior spending and spending

a.

borrowing and investment

b.

investment and borrowing

c.

borrowing and savings behavior

d.

spending and spending

2)Loans tend to be ____ contracts that meet the need of the borrower, while bonds are ___ contracts between lenders and borrowers.

a.

standardized and customized

b.

long-term and short-term

c.

cheap and expensive

d.

customized and standardized

3) Ownership of a portion of a firm is represented by (a) ___ while a secured loan is represented by a(n) ___.

a.

bond and equity

b.

mutual fund and bond

c.

equity and bond

d.

bond and mutual fund

borrowing and investment

Explanation / Answer

1 borrowing and saving behavior( government are demanders for loan and public are generally savers)

2. Customized and standardized

3 bonds and equity

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