Rising interest-rate riskA) increased the cost of financial innovation.B) increased the demand for financial innovation.C) reduced the cost of financial innovation.D) reduced the demand for financial innovation.

An increase in the real interest rate will: a. most likely lower the reward to savings. b. most likely lower the cost of borrowing. c. cause consumers to spend more and save less. d. most likely lower consumer purchases of durable goods.

When interest rates in the financial markets rise, we would generally expect the quantity demanded of financial capital to:Question 10Answera.Decrease.b.Increase.c.Stay the same.d.Be unaffected.Clear my choice

An increase in the interest rateA) increases the demand for money.B) increases the quantity of money demanded.C) decreases the demand for money.D) decreases the quantity of money demanded.

Which of the following would likely increase the supply of financial capital in the loanable funds market?Question 2Answera.An increase in interest rates.b.A decrease in government borrowing.c.A decrease in private savings.d.An increase in consumer spending.

Financial innovation contributes to:Question 9AnswerA.Economic stagnationB.Improved financial services and productsC.Increased risk in the financial systemD.Decreased efficiency