The banks will have to decrease the interest rate on their mortgage loans in the market for traditional loans because at a lower demand the demand curve will shift to the left decreasing the interest rate and quantity. The answer is "C".
Online mortgage companies have been growing in numbers and size, and as a result, other things...
The current economy is strong and many people are feeling confident about their future and ability to pay off debt. Because of this they are taking on more bank loans for things like new cars, renovating their homes, or buying new homes Using the four step process with this type of market, what will banks most likely do with their loans? They would increase the supply of loans and decrease the interest rate. They would increase the quantity supplied of...
The current economy is strong and many people are feeling confident about their future and ability to pay off debt. Because of this they are taking on more bank loans for things like new cars, renovating their homes, or buying new homes. Using the four step process with this type of market, what will banks most likely do with their loans? They would to decrease the quantity supplied of loans and decrease the interest rate. They would increase the supply...
Assume that the British government imposes quotas on imports by British companies. Other things being equal, the U.S. demand for pounds would ____, the supply of pounds for sale would ____, and the equilibrium value of the pound would ____. a. decrease; increase; decrease b. remain unchanged; decrease; increase c. remain unchanged; increase; decrease d. increase; increase; increase
An increase in Days Inventory Held, all other things equal, would ___________ the working capital cycle and reflect ________________ liquidity decrease; increased decrease; decreased increase; decreased increase; increased
Other things equal, when U.S. money moves to take advantage of better foreign investment opportunities, then: a. U.S. banks will have excess reserves to loan out b. the U.S. money supply will decrease c. the U.S. money supply will increase d. the reserve requirement for U.S. banks will rise e. the effect of the U.S. deposit expansion multiplier will be increased
4. The subprime mortgage market The financial crisis started with defaults-borrowers not repaying their loans-on subprime mortgages in the United States. Subprime mortgages have which of the following characteristics? Check all that apply. They have lower overall interest rates than most other mortgages. They are made to people with relatively few assets. They have a higher likelihood of default. Subprime mortgages expanded to about 35% of all mortgages issued in the United States in 2004. which of the following contributed...
What effect over the last decade, has the increasingly efficient and inexpensive technology of online college courses had on the college textbook market? O The demand for physical textbooks have steadily decreased, and as a result more publishing companies are having less demand for high skilled textbook editor jobs. The demand for textbooks has declined resulting in publishing companies increasing their demand of textbook editor jobs. O The supply for college textbooks has increased as a result there are fewer...
Heating Oil prices increase by 46 percent and other things remain the same. As a result, there is O A. More information is needed to determine if the demand for Heating Oil increases or decreases. OB. no change in the quantity of Heating Oil demanded. O C. an increase in the demand for Heating Oil. LOD. a decrease in the quantity of Heating Oil demanded. O E. a decrease in the demand for Heating Oil.
30) In the following question you are asked to determine, other things equal, the effects of a 30 given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) o/X and (3) the equilibrium quantity (Q) of X rise sharply in the future will A) increase D, decrease P, and increase o. ) decrease S, increase P, and increase O C) increase S,...
Question 1 Other things remain unchanged, the market demand curve for a particular expected to shift leftwards when the price of that product declines. . True False Question 2 Other things remain equal, which of the following factors causes the market supply curve of Blue-ray players to shift leftwards? The costs of producing a single Blue-ray player increases. The number of firms selling Blue-ray players increases. The sellers are expecting the price of Blue-ray players to decline in the soon future. Non of the above factors causes the...