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Which of the following would not be a source of funds?

a. decrease in an equity account

b. increase in a liability account

c. decrease in an asset account

d. all the above are sources of funds

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Nelly Stracke
Nelly StrackeLv2
30 Sep 2019

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Related questions

1. Suppose the default risk of corporate bonds decreases.

a, What would be the major effect?

- Increase in demand for loanable funds (increase in supply of bonds)

- Decrease in demand for loanable funds (decrease in supply of bonds)

- Increase in supply of loanable funds (increase in demand for bonds)

- Decrease in supply of loanable funds (decrease in demand for bonds)

b, Why is so?

2. Suppose the default risk of corporate bonds decreases

a, What would be the major effect?

- Increase in demand for loanable funds (increase in supply of bonds)

- Decrease in demand for loanable funds (decrease in supply of bonds)

- Increase in supply of loanable funds (increase in demand for bonds)

- Decrease in supply of loanable funds (decrease in demand for bonds)

b, Why is so

3. Suppose the Federal Reserve makes a discount loan to a bank

a, What would be the major effect in the market for federal funds?

- Increase in demand for federal funds

- Decrease in demand for federal funds

- Increase in supply of federal funds

- Decrease in supply of federal funds

b, Why is so?

An increase in the rate of return on an investment

A. would most likely increase the supply of loanable funds

B. would most likely increase the interest rate

C. would most likely decrease the interest rate

D. would most likely decrease the supply of loanable funds

E. would most likely decrease the quantity demanded of loanable funds

Ā 

1. Suppose the default risk of corporate bonds decreases.

What would be the major effect?

Increase in demand for loanable funds (increase in supply of bonds)

Decrease in demand for loanable funds (decrease in supply of bonds)

Increase in supply of loanable funds (increase in demand for bonds)

Decrease in supply of loanable funds (decrease in demand for bonds)

Why?

b. Graphically illustrate the effect on the equilibrium interest rate and quantity of loanable funds.

2. Suppose the Federal Reserve makes a discount loan to a bank.

What would be the major effect in the market for federal funds?

Increase in demand for federal funds

Decrease in demand for federal funds

Increase in supply of federal funds

Decrease in supply of federal funds

Why?

b.Graphically illustrate the effect on the equilibrium interest rate and quantity of federal funds.

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