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- Subject
- Financial Markets and Fundsfinance-mcqs › financial-markets-and-funds
- Published
- 12 May 2023
- Last updated
- 28 May 2026
Explanation
When the equilibrium interest rate rises, it leads to a reduction in restrictiveness under non-price conditions, meaning the restrictiveness decreases rather than increases or remains unchanged.
More Financial Markets and Funds MCQs
Practice related questions from the same subject.
- 1.What does it indicate when companies begin to finance their investments using internally generated funds?
- 2.Loans taken for purchasing vehicles and household appliances fall under which category of goods?
- 3.What term describes the total accumulation of previous budget deficits over time?
- 4.Which category do plant and equipment belong to?
- 5.What occurs in the financial market when the interest rate exceeds the equilibrium borrowing rate for loanable funds?
- 6.When the equilibrium interest rate rises, how does the movement along the supply of funds curve manifest?
- 7.What type of relationship must exist between the supply and demand of funds to ensure there is no shortage of funds?
- 8.What happens to the cost of borrowing funds when the demand for loans declines?
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