According to loanable funds theory, fall in interest rates results in to
A. zero demand of funds
B. equilibrium demands of funds
C. higher demand of funds
D. lower demand of funds
Answer: Option C
Solution (By Examveda Team)
According to loanable funds theory, fall in interest rates results in to higher demand of funds. According to this approach, the interest rate is determined by the demand for and supply of loanable funds. The term loanable funds includes all forms of credit, such as loans, bonds, or savings deposits.This Question Belongs to Management >> International Finance And Treasury
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