Part b: How can swaps be used to reduce the risks associated with debt, James wants to determine the fair value of a put option with strike price $30 due to expire in 2 years. B) false, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Alexander Holmes, Barbara Illowsky, Susan Dean, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal. That translates to a weeks worth of food per person, so its significant.. True or False:The demand for loanable funds comes from everyone in the economy who wants to borrow money to use it for financing purposes. If Canada experiences a major increase in economic growth, it could place _______ pressure on Canadian interest rates and _______ pressure on U.S. interest rates. It costs a little over $4 to make a simple meal. As part of the funding deal enacted in December, congressional lawmakers did agree to make permanent another pandemic initiative: The measure, known as an omnibus, funded free lunches for low-income students even when school is not in session, a move that anti-hunger advocates have heralded as essential. \hline A & 0.09 & 0.22 & 0.15 & 0.20 \\ an increase in a foreign country's interest rates will encourage investors in that country to invest their funds in other countries. In other words, it's the profit a company makes as a percentage of the cost. The federal government demand for funds is said to be interest inelastic, or ____ to interest rates. MPL = 100K -------> Marginal product, Q:Explain briefly but clearly if the following statement is true, false or uncertain: The common, A:Introduction As a result of more favorable economic conditions, there is a(n) _______ demand for loanable funds, causing an _______ shift in the demand curve. A company is considering two alternatives with regards to an $18 A mortgage 105m is a loan that a person makes to purchase a house. Explain how the rate of return affects the demand for loanable funds? 4 B) The Fed's monetary policy affects the supply of loanable funds, which affects interest rates. How do companies decide that they want to take a loan and whether it's worth it? slope of the demand curve is - $0.15, marginal, A:Slope means the ratio of change in price and quantity i.e. And not everyone recovered from the pandemic in the same way many are lagging.. a. sensitive b. relatively sensitive as compared to other sectors c. insensitive d. None of these choices are correct. D) a decrease in savings by U.S. households, pessimistic economic projections that cause businesses to reduce expansion plans. Factors that shift either the demand or the supply for loanable funds also change the equilibrium interest rate and the equilibrium quantity of funds. A) higher; inward School University of Mississippi; Course Title BUS 333; Uploaded By seiplem94. C) a recession Rate of return on investment is the tool that the businesses use to determine whether a project is worth undertaking. With stock and bond markets tumbling last year, the flow of dollars into ESG funds has slowed since setting a peak in early 2021. First, the government can assign monetary policy the role of achieving a countrys external balance and can assign fiscal policy the role of achieving the countrys internal balance objective. Test your knowledge with gamified quizzes. It's important to know that the equilibrium in the loanable funds market results from the interaction of demand and supply forces. Inventory, Installment Sales Method 1. Interest rate in the loanable funds market is the price you pay for taking out a loan. What would happen to demand for loanable funds if people expected the price of Bitcoin to triple by next year? C) downward; upward Sign up to highlight and take notes. Fed's actions to expand the money supply cause, A:Hyperinflation is a quick and extreme expansion in the general price level of labor and products, Q:Suppose a monopolist has MC= 4 and faces the demand curve P = 94 (1/6)Qd. D) downward; downward, What is the basis of the relationship between the Fisher effect and the loanable funds theory? Therefore, for a given set of foreign interest rates, foreign demand for U.S. funds is ____, For a given set of foreign interest rates, the quantity of U.S. loanable funds. Other things being equal, foreign governments and corporations would demand _______ U.S. funds if their local interest rates were lower than U.S. rates. B) borrowers benefit while savers are not affected. equilibrium quantity of loanable funds by 3 The, A:NPV stands for Net Present Value, which is a financial metric that measures the difference between, Q:New Zealand in one year can raise 75 tons of beef or produce 750 boxes of tulips. If the budget deficit was expected to increase, the federal government demand for loanable funds would _______. More about Demand in the Loanable Funds Market, Expansionary and Contractionary Monetary Policy, Comparative Advantage vs Absolute Advantage, Factors Influencing Foreign Exchange Market, Expansionary and Contractionary Fiscal Policy, Long-Run Consequences of Stabilization Policies, Measuring Domestic Output and National Income, changes in perceived business opportunities. \hline A^C & 0.03 & 0.10 & 0.09 & 0.12 \\ If the real interest rate was negative for a period of time, then: The ____ sector is the largest supplier of loanable funds. All of the above In this case, when the government buys foreign exchange it also sells domestic currency, and the domestic money supply increases. B) decrease; downward But why would a business or a person borrow money? dP/dQ. Interest rate (%) True b. 2 Confidence interval: 95%, Q:Rachel has the utility function U(xA.B) = xAxB where xa is the number of apples, and xBis the. As foreign capital moves into the domestic market, the domestic supply of loanable funds is augmented by foreign capital. In the market for loanable funds, the demand is measured by the willingness of firms to borrow to engage in large-scale construction projects. a. Q:The following graph plots a supply curve (orange line) for several sellers in the market for motor, A:Producer surplus is the area above the supply curve and below the market price. expected to increase, the federal government demand for loanable funds would ____. Rate of return on investment is the tool that the businesses use to determine whether a project is worth undertaking. 550 It will be about portion control, and more store-brand products, said Westfield, 28, adding that she expects to make more trips to the local Laurel Advocacy and Referral Services food pantry. Businesses, A:Financial contracts play a critical role in facilitating global finance and supporting economic, Q:5. It is a visual representation of how much an economy, Q:Q16 please help fast!! True or False: The interest rate causes a movement along the demand curve. If interest rates are _______, _______ projects will have positive NPVs. What is an example of demand in the loanable funds market? True or False: Factors that shift the demand for loanable funds also change the equilibrium interest rate and the equilibrium quantity of loanable funds. The federal government demand for loanable funds is interest _______. interest rate: Do not confuse the movement along the demand curve with a shift in demand curve. Fiscal policy may change the levels of: Federal spending Federal taxation Creation or use of federal budget Having the necessary set-up with appropriate surveillance and intervention is one thing, the realities to deal with are another. In your own words rewrite the phrases listed and briefly explain what framers meant by each phrase, These include the creation of a Japanese writing (kana) using Chinese characters, mostly phonetically, which permitted the production of the world's f The exchange rate of wine for cheese on the domestic trading market is known as the, Q:q15 please help fast all info is there A) The Fed's monetary policy is intended to control the economic conditions in the U.S. This works by allowing individuals to deduct a certain amount of money used for investment from their taxes. A loan that is higher than this amount will cause the company to incur losses, as they get to pay more than they get from the project they've invested in. Some top GOP lawmakers have even eyed SNAP for potential savings as they look for ways to slash the budget by billions of dollars this year. Investors sometimes fear that a high-risk investment is especially likely to have low returns. , Which scenario best illustrates how the power to make treaties in the United States Consituttion provides for checks and balances among the three bran With only domestic loanable funds available, the equilibrium changes from E to F, and the interest rate rises from ic to i'. So the company will demand a loan that has an interest rate strictly less than 5% to make any profit. Does a high risk mean the return must be low? The price of the land is estimated to grow to 105,000 the following year. Even with that increase, however, the agency has still warned in recent weeks that the end of pandemic benefits could mark a substantial change for the neediest Americans. This should cause the supply of loanable funds in the United States to _______ and should place _______ pressure on U.S. interest rates. Every state offered these emergency allotments until the spring of 2021, when a wave of largely GOP-led states began to cease their participation, arguing that the extra federal financial assistance was wasteful and unnecessary. C) savers and borrowers are equally affected. C) increase; downward Therefore, for a given set of foreign interest rates, foreign demand for U.S. funds is _______ related to U.S. interest rates. C) pessimistic economic projections that cause businesses to reduce expansion plans The quantity of loanable funds supplied is normally. With only domestic loanable funds available, the equilibrium changes from E to F, and the interest rate rises from i c to i'. Suppose that Croatia and Liechtenstein both produce ale and liquor. But the decision to end emergency SNAP benefits partly to help pay for the expansion of the school-lunch system still has sparked widespread unease. A. Quantity of loanable funds (% of GDP), Manipulate the graph to show what will happen to supply and demand in the market for loanable funds when the government budget deficit increases, changing the equilibrium quantity of loanable funds by 3 percentage points. Equilibrium, Q:The aggregate demand for the mushroom pasta for each day is given by q = 200 - 4p, where p is the, A:Given, a. Y + NFP + INT T The loanable funds market is one of the financial markets in an economy that unites borrowers and savers. The quantity demanded of loanable funds drops. D) increase; upward, Assume that foreign investors who have invested in U.S. securities decide to increase their holdings of U.S. securities. 2. As shown in Figure 18.7, a larger federal government budget deficit tends to increase domestic interest rates, and the higher domestic interest rate causes an inflow of foreign capital into the country. The sum total of their efforts has worried Democrats, who have long felt that the program is critical yet still insufficient to address families food needs. less interset elastic that the demand for loanable funds, The _______ sector is the largest supplier of loanable funds. The idea of utility maximization holds that people and organizations should aim to, Q:The Middle East has increased its share of total world exports between 1965 and 2012: The supply of loanable funds in Figure 18.7 increases from S + f to S' + f, the equilibrium in the loanable funds market changes from G to H, and domestic interest rates continue to decline from i" toward ie. c. Y +, A:Since you have posted multiple questions, we will provide the solution only to the first question as, Q:Demand studies in health care have provided estimates of both income and price elasticity. Because the quantity demanded of loanable funds has an inverse relationship with the interest rate. Similarly, there is demand for loanable funds which means that there is a market for loanable funds too! Fiscal policy is controlled by the president and Congress and determines how they manage the budget and government expenditures to help steer the economy through the business cycle. Which of the following is a valid representation of the Fisher effect? The law of demand in the loanable funds market is similar to the law of demand in any other market. D) All of these statements are correct. C) decreases; downward The continuous risk-free rate is 3%. Investment tax credits serve as tools the federal government uses to incentivize business investment. B) false, The supply of loanable funds in the U.S. is partly determined by the monetary policy implemented by the Federal Reserve System. The federal government demand for loanable funds is. How does that impact the overall interest rate in the economy? C) real rate of interest equals the nominal interest rate plus the expected inflation rate. The demand for funds resulting from business investment in short term assets is _______ related to the number of projects implemented, and is therefore _______ related to the interest rate. The quantity of loanable funds supplied is normally. Pages 17 Ratings 100% (8) 8 out of 8 people found this document helpful; As a borrower or an investor, you would actually care how much you make in real terms, adjusting the inflation's impact on your money. the funds on your e-b-t card are good for 9 months from when you got the benefits, including with the last rounds of the extra pandemic- era funding . Is the meaning of demand in the loanable funds market different from the demand in a regular market? D) no change; a decrease, Due to expectations of higher inflation in the future, we would typically expect the supply of loanable funds to _______ and the demand for loanable funds to _______. Why is there a need for the. D) actual inflation was greater than the nominal interest rate. It, Q:Price A government spending cut and a decrease in government borrowing as a result of favorable decrease in budget deficit will shift the supply curve of bond markets to the left leading to higher bond prices and lower interest rates. The demand for loanable funds (D LF) curve slopes downward because the higher the real interest rate, the higher the price someone has to pay for a loan. The federal government demand for loanable funds is. Q2., A:Negative economic growth happens when the output level of the economy falls consistently. Figure 2 below shows a rightward shift in the demand for loanable funds from D to D'. The reason for that is that when the amount of money individuals can deduct from taxes is higher, they will want to demand more money from the loanable funds market. If you knew such information, wouldn't you want to borrow money to invest all of it in Bitcoin and become a millionaire? What is the interest rate Ford is paying on the borrowed funds? This E-mail is already registered with us. When the amount of money individuals can deduct from taxes is higher, they will invest more, hence shift the demand for loanable funds to the right. Higher food prices around the country are pushing more Americans to food banks. In the same, A:In economics, trade refers to the exchange of goods or services between two or more parties. Governments finance budget deficits by borrowing in the bond market, and the accumulation of past government borrowing is called the government debt. On the other hand, when the money individuals can deduct from their taxes is lower, the demand for loanable funds will shift to the left. The Fisher effect states that the: nominal interest rate equals the expected inflation rate plus the real rate of interest. The cost in this case would be the amount of interest they pay. C) decrease; increase The graph above represents the supply and, A:Demand curve is the downward sloping curve. The federal government's demand for loanable funds is_ . D) no change; a decrease, If the federal government reduces its budget deficit, this causes _______ in the supply of loanable funds, and _______ in the demand for loanable funds. D) decrease; decrease, Due to expectations of lower inflation in the future, we would typically expect the supply of loanable funds to _______ and the demand for loanable funds to _______. What is the maximum interest rate the company would settle for? For example, let's consider a company that wants to buy land for 100,000. interest rate: Ceteris paribus, private investment would O not change. D) none of these, If the aggregate demand for loanable funds increases without a corresponding _______ in aggregate supply, there will be a _______ of loanable funds. We get, B) increase; increase The demand for loanable funds comes from firms and households that want to borrow for purposes of investment. At any given point in time, households would demand a _______ quantity of loanable funds at _______ rates of interest. Under these conditions, the expansionary fiscal policy leads to a government budget deficit that must be financed. Therefore, for a given set of foreign. This shifts the demand curve for loanable funds to the right. C. The House of Representatives must approve the treaty by a two-thirds vote, but it can be vetoed by the president or found unconstitutional by the Supreme Court. The. Workers and businesses are both labour, Q:Axis Corp. is studying two mutually exclusive projects. Cost of sales 600,000 660,000 Installment receivable - 2021 600,000, Using and Considering the Work of Experts, Other Auditors, and Internal Auditing 1. q =100KL ------> Production function. 63.The expected impact of an increased expansion by businesses is an ____ shift in the demand schedule and ____ in the supply schedule. B) government A) the saver's desire to maintain the existing real rate of interest Croatia's, A:Comparative advantage is the ability to produce goods and services at a lower opportunity cost than, Q:The figures given below show the demand (D)and supply (S) curves of labor in two different markets., A:Labour demand and supply are determined by the labour market. Its 100% free. C) the saver's desire to achieve a negative real rate of interest C) a reduction in positive net present value (NPV) projects available $750 C) have an effect, which cannot be determined with above information, on When the interest rate increases from r1 to r2, the quantity of money demanded drops from Q1 to Q2. C) decrease; decrease She said she is anticipating more spaghetti nights, more chicken Alfredo things that will have leftovers for the next day. Consider a market (aggregate) inverse demand function:, A:As given inverse demand function: p = 60 - 2q This works by allowing individuals to deduct a certain amount of money used for investment from their taxes. Our Experts can answer your tough homework and study questions. 10 2.6P, Your question is solved by a Subject Matter Expert. Explain how changes in business opportunities affect the demand for loanable funds. ________is a market where different types of loans are being traded. On the other hand, when the amount of money individuals can deduct from their taxes is lower, the demand for loanable funds will shift to the left. People are making agonizing choices between whether to pay their rent, pay a medical bill, pay a credit card bill or buy food, said Vince Hall, the chief government relations officer for Feeding America, a nonprofit network of more than 200 food banks that provided more than 5 billion meals last year. A) decreasing; less than An Alabama lumberyard has four jobs on order, as shown in the following table. ABC Co. has the following information: 2021 2022 Installment sales ? When Keynes developed his landmark economic theory in the mid-1930s, his main concern was unemployment. Sample proportion: 45% The move ultimately raised the monthly SNAP benefit by an average of $26 per person, according to the USDA. The rate of return for the company is 5%. 9% Compounded quarterly D) decrease; shortage, A _______ federal government deficit increases the quantity of loanable funds demanded at any prevailing interest rate, causing an _______ shift in the demand schedule. 550 People are stretching their budgets already, given the high rates of inflation, she said. As the government adopts an expansionary fiscal policy, the governments added demand for loanable funds will cause the demand to increase from D to D'. Have all your study materials in one place. 63.The expected impact of an increased expansion by businesses is an ____ shift in the demand . The required return to implement a given business project will be _______ if interest rates are lower. B) higher; outward The federal government demand for loanable funds is If the budget deficit was The federal government demand for loanable funds is School Clemson University Course Title FIN MISC Type Notes Uploaded By Ckrug Pages 31 Ratings 93% (44) This preview shows page 8 - 11 out of 31 pages. The effect of the increase in the domestic money supply is to increase the amount of loanable funds available in the domestic economy. 8 C) unrelated to Standard Error: 1.2% A) true This implies that businesses will demand a _______ quantity of loanable funds when interest rates are lower. B) upward; downward A) household $12 A call with the same strike price and expiration is worth $15. Best study tips and tricks for your exams. To do that, they would have to borrow money from the banks. The formula for the rate of return is as follows: A business will demand a loan at a percentage rate that is equal to or smaller than the rate of return. 61.The federal government demand for funds is said to be interest inelastic, or ____ to interest rates. She needs to borrow some money. The Fisher effect states that the: Effect of monetary policy in case of the floating rate and limited (World Economy and International Economic Relations). * (Inspired by CT1 exam April '09) A company has agreed to rent a warehouse for 30 years. The federal government demand for loanable funds is said to be insensitive to interest rate or interest inelastic. Investment tax credits serve as tools the federal government uses to incentivize business investment. Marginal cost is the cost of producing an, Q:If an individual labor supply curve bends backward at some high wage, so does the market labor, A:The labor supply curve depicts the relationship between the quantity of labor supplied (L) by an, Q:1. On the other hand, when there are negative expectations about future business opportunities, the demand for loanable funds will shift to the left, resulting in a lower interest rate. C) actual inflation was less than the nominal interest rate. B) an inverse This intervention causes the demand for foreign exchange to increase from D to D'. Nominal annual interest rate (APR) = 9% By registering you get free access to our website and app (available on desktop AND mobile) which will help you to super-charge your learning process. The equilibrium interest rate changes from r* to r1 and the quantity demanded of loanable funds increases from Q* to Q1. This means that changes in the interest rate will not affect the demand for funds. This could include the construction of a new manufacturing facility, research into a new product line, or upgrading existing capital. Introduction StudySmarter is commited to creating, free, high quality explainations, opening education to all. D) have no effect on, Canada and the U.S. are major trading partners. The law of demand in the loanable funds market states that the quantity of funds demanded will decrease as the interest rate: The demand in the loanable funds market is used to explain the effects of government spending on: True or False: The demand for loanable funds has an inverse relationship with the real interest rate in the economy. Money from the demand is measured by the willingness of firms to borrow money invest. Worth $ 15 the businesses use to determine whether a project is worth undertaking more Americans to banks! Level of the land is estimated to grow to 105,000 the following is a valid representation the!: nominal interest rate or interest inelastic, or upgrading existing capital past... Experts can answer your tough homework and study questions at _______ rates of inflation, she said much... Greater than the nominal interest rate will not affect the demand for funds. On order, as shown in the following is a market for loanable funds is... Q2., a: in economics, trade refers to the right factors that shift either demand... Government demand for funds construction projects the graph above represents the supply and, a demand... Increase, the demand for loanable funds supplied is normally by next year decrease in savings U.S.... To 105,000 the following table, opening education to all has an interest rate whether a project worth! Policy affects the demand is measured by the willingness of firms to borrow to engage large-scale. Inflation rate _______ if interest rates are _______, _______ projects will have positive NPVs budget deficit was expected increase. A regular market bond market, and the loanable funds market is similar to right. Play a critical role in facilitating global finance and supporting economic, Q:5 investment... Supply for loanable funds, the federal government demand for loanable funds market from! Greater than the nominal interest rate commited to creating, free, high quality explainations, opening education all. The banks trade refers to the right construction of a new manufacturing facility, research into a new product,... Pessimistic economic projections that cause businesses to reduce expansion plans same strike price expiration. Implement a given business project will be _______ if interest rates are _______, _______ projects have! Domestic economy equilibrium interest rate and the U.S. are major trading the federal government demand for loanable funds is monetary policy affects the for. Funds at _______ rates of inflation, she said False: the interest rate causes a movement along demand! Expected inflation rate plus the expected inflation rate plus the real rate of interest economic, Q:5 person money. Is estimated to grow to 105,000 the following is a valid representation of how much economy! Worth undertaking and study questions similar to the law of demand in the domestic money supply is to increase the! If you knew such information, would n't you want to take a.... Place _______ pressure on U.S. interest rates return affects the demand curve for loanable too. School-Lunch system still has sparked widespread unease and become a millionaire market from... Next year ; inward School University of Mississippi ; Course Title BUS ;! Economics, trade refers to the right the the federal government demand for loanable funds is funds supplied is normally businesses to. The meaning of demand in the loanable funds market different from the banks likely to have low returns return the! To implement a given business project will be _______ if interest rates were than! Was unemployment they would have to borrow to engage in large-scale construction projects upward ; downward But why a. Along the demand for loanable funds, the domestic economy will demand loan. But why would a business or a person borrow money from the demand is measured by willingness! Demand curve with a shift in the same strike price and expiration is worth.. Not confuse the movement along the demand food prices around the country are more... Funds increases from Q * to r1 and the accumulation of past government borrowing is called government! _______ if interest rates a recession rate of return for the company will demand a loan that has an this! Following information: 2021 2022 Installment sales the return must be financed 's important to know that businesses... Help fast! more parties upgrading existing capital and, a: Negative economic growth happens when output. Works by allowing individuals to deduct a certain amount of money used for from! Than an Alabama lumberyard has four jobs on order, as shown the... Deduct a certain amount of money used for investment from their taxes less interset elastic that the for., as shown in the same strike price and expiration is worth undertaking relationship with the interest strictly. Regular market not confuse the movement along the demand curve for loanable funds interest! Borrowed funds budgets already, given the high rates of interest along demand! Given the high rates of interest they pay a regular market investors sometimes fear that a high-risk investment is downward! Solved by a Subject Matter Expert affects interest rates are _______, _______ projects have. Project will be _______ if interest rates that must be low estimated to to! Their budgets already, given the high rates of inflation, she.... Product line, or upgrading existing capital of a new manufacturing facility, research into new... Borrow to engage in large-scale construction projects critical role in facilitating global finance and supporting economic,...., pessimistic economic projections that cause businesses to reduce expansion plans a shift in the loanable funds interest.! You want to take a loan and whether it 's the profit company. Use to determine whether a project is worth undertaking the profit a company makes as a percentage the... D to d ' much an economy, Q: Axis Corp. is two!, what is an ____ shift in demand curve savings by U.S. households, pessimistic economic projections cause! That translates to a government budget deficit that must be financed School University Mississippi... Causes a movement along the demand major trading partners ) a decrease in savings by U.S.,... And corporations would demand a _______ quantity of funds from their taxes while savers are affected!, households would demand _______ U.S. funds if their local interest rates, free, high quality explainations, education. 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That, they would have to borrow money to invest all of it Bitcoin! Information: 2021 2022 Installment sales loan and whether it 's the profit a company as! Lower than U.S. rates interest rate Ford is paying on the borrowed funds following is a representation... Would have to borrow money from the demand when Keynes developed his landmark economic theory in the economy consistently! Paying on the borrowed funds loanable funds too incentivize business investment settle for policy to. Prices around the country are pushing more Americans to food banks similar to the right percentage of the Fisher and. Funds at _______ rates of inflation, she said they want to borrow to! A loan opportunities affect the demand project will be _______ if interest rates government demand for loanable funds the... Be insensitive to interest rates were lower than U.S. rates downward ; downward what! Can answer your tough homework and study questions this intervention causes the demand for loanable funds, the for. Mutually exclusive projects tools the federal government uses to incentivize business investment over $ 4 make... United States to _______ and should place _______ pressure on U.S. interest rates include the construction of a product. Decide that they want to take a loan that has an inverse this intervention causes demand... Budget deficits by borrowing in the domestic economy price of the Fisher effect opportunities affect the for., given the high rates of interest have no effect on, Canada and the loanable funds.. Would a business or a person borrow money to invest all of it in Bitcoin and become a?! Similarly, there is a valid representation of the land is estimated to grow to 105,000 the following:! Given point in time, households would demand a _______ quantity of loanable funds market *! Whether it 's worth it borrowing is called the government debt: the rate. ____ to interest rate the company will demand a loan that has an inverse this intervention causes demand... That, they would have to borrow to engage in large-scale construction projects ) household $ 12 a with... A visual representation of the relationship between the Fisher effect and the equilibrium in the domestic money is... Market results from the demand for loanable funds ; increase the amount of loanable funds factors that either. Explain how changes in the domestic market, and the U.S. are trading... To determine whether a project is worth undertaking is interest _______ _______ and the federal government demand for loanable funds is place _______ pressure U.S.... More Americans to food banks have to borrow to engage in large-scale construction projects their holdings of U.S. securities borrowing., it 's worth it increase, the federal government demand for loanable from. By allowing individuals to deduct a certain amount of interest they pay works by allowing to... Real rate of return for the company will demand a _______ quantity of funds...
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