The number of lenders in the funds market decreases as, Ask an Expert

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The number of lenders in the funds market decreases as several major banks cease doing business. Which of the following would most likely result in the market for funds?

A. Supply would decrease, leading to a surplus of funds, and a lower market clearing interest rate.

B. Supply would decrease, leading to a shortage of funds and a higher market clearing interest rate.

C. Supply would increase, leading to a surplus of funds and a lower market clearing interest rate.

D. Supply would increase, leading to a shortage of funds and a higher market clearing interest rate.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92335295

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