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Econ 20B- Additional Problem Set 4

Econ 20B- Additional Problem Set 4. I. MULTIPLE CHOICES. Choose the one alternative that best completes the statement to answer the question. 1. Institutions in the economy that help to match one person's saving with another person's investment are collectively called the a. Federal Reserve system. b. banking system. c. monetary system. d. financial system. ANS: D. 2. Which of the following is not correct? a. When a country saves more, it has more capital. b. A supplier of loanable funds borrows money. c. The interest rate adjusts to balance the quantity supplied of and the quantity demanded of loanable funds. d. If Mary buys equipment for her factory, Mary is engaging in capital investment. ANS: B. 3. A bond is a a.

A supplier of loanable funds borrows money. c. The interest rate adjusts to balance the quantity supplied of and the quantity demanded of loanable funds. d. If Mary buys equipment for her factory, Mary is engaging in capital investment. ... interest rate rises saving becomes more rewarding, so people want to save more. The inverse relation

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