the economics of money, banking, and financial markets

149 #

© 2014 Pearson Canada Inc.#

5.8 Web Appendix 3: Loanable Funds Framework

1. 
   

   In the loanable funds framework, the ____ curve of bonds is equivalent to the ____
   curve of loanable funds.
   A) demand; demand
   B) demand; supply
   C) supply; supply
   D) supply; equilibrium
   Answer: B
   Diff: 1 Type: MC Page Ref: 5A.3- 17
   Topic: Questions for Web Appendix on Loanable Funds Framework
   Skill: Recall
   Objective List: Appendix: Loanable Funds Framework

   
   


2. 
   

   In the loanable funds framework, the ____ is measured on the vertical axis.
   A) price of bonds
   B) interest rate
   C) quantity of bonds
   D) quantity of loanable funds
   Answer: B
   Diff: 1 Type: MC Page Ref: 5A.3- 18
   Topic: Questions for Web Appendix on Loanable Funds Framework
   Skill: Recall
   Objective List: Appendix: Loanable Funds Framework