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3 Cards in this Set
- Front
- Back
Factors That Affect Supply of funds |
1. Interest Rate - move along curve 2. Total Wealth - Shift curve 3. Risk - shift curve 4. Near term spending - shift curve 5. Monetary expansion -shift curve 6. Economic conditions - shift curve |
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Factors That Affect Demand funds |
1. Interest Rate - move along curve 2. Restrictiveness of non-price conditions conditions - shift curve 3. Economic condition - shift curve 4. Utility derived from asset purchased with borrowed funds - shift curve |
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Factors affecting Nominal Interest Rate |
1. Inflation 2. Real Risk Free Rate 3. Default Risk 4. Liquidity 5. Special Provision - taxability - convertibility - callability 6. Term of Maturity
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