Lectue 2 ( Theroies Of Determetation Of Interes Ratees) Flashcards

1
Q

What are loanaoble funds

A

Funds available for lending in financial market

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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

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3
Q

The equilibrium interest rate and graphs

A
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4
Q

What is the interest detetermined by

A

The supply and demand of the loanable funds

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5
Q

What sectors demand loanable fund

A
  • households
    -companies
    Governments
    -Forgein
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