Lectue 2 ( Theroies Of Determetation Of Interes Ratees) Flashcards
1
Q
What are loanaoble funds
A
Funds available for lending in financial market
2
Q
What are the price of loanobvle funds
A
The interest rate which borrowers ( deficit units) have to pay lenders ( surplus units) to give up their funds
3
Q
The equilibrium interest rate and graphs
A
4
Q
What is the interest detetermined by
A
The supply and demand of the loanable funds
5
Q
What sectors demand loanable fund
A
- households
-companies
Governments
-Forgein