In financial markets, a decrease in investment causes ____________?

Question

Accepted Answer

Increase in availability of funds - When investment decreases, fewer borrowers compete for funds in the financial market. This lowers the demand for loanable funds, resulting in a higher availability of funds for lenders. Consequently, borrowing becomes easier and more funds are available at existing interest rates.

MCQ Detailed View

In financial markets, a decrease in investment causes ____________?

Detailed Explanation

Discussion

Leave a Comment

MCQ Detailed View

In financial markets, a decrease in investment causes ____________?

Detailed Explanation

Related Questions

In cash flow analysis, two projects are compared using a common life approach, which is classified as&#8230;

Other factors held constant, a project with lesser liquidity is usually due to ____________?

In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?&#8230;

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value&#8230;

Discussion

Leave a Comment

In cash flow analysis, two projects are compared using a common life approach, which is classified as…

In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?…

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value…