Saving - Investment - Financial System

In closed economy,

• Y = C + I + G + NX
• Y = C + I + G
• Y = C + I + NX
• Y = C + G + NX

Which of the following best describes why the quantity of loanable funds supplied increases when the real interest rate increases?

• Higher interest rates increase the quantity of money supplied
• Higher interest rates lower net capital inflows
• Higher real interest rate encourages savings
• Higher interest rates encourage investment
• Household consumption increases when interest rates increase

Private saving is

• Y – C – G
• T – G
• Y – T – C
• C + I + G

National saving includes:

• savings of households and businesses
• savings of households and the government
• corporate and government savings
• private savings and government savings

Every financial market has the following characteristic:

• It determines the level of interest rates.
• It allows common stock to be traded.
• It allows loans to be made.
• It channels funds from lenders-savers to borrowers-spenders.

What are the important components of the national income indicator in Vietnam?

• GDP, GNI, and NDI
• Consumption expenditure, investment expenditure, and net trade
• Government expenditure
• All options are correct

If T < G,

• The government runs a budget surplus
• Public saving is a positive number
• Public saving is zero
• The government runs a budget deficit

What relationship does the supply of loanable funds show? Choose 1 answer:

• Borrowers respond to an increase in interest rates by borrowing more money.
• Individuals respond to lower interest rates by increasing the amount of money they hold.
• Savers respond to rising interest rates by saving more money.
• Central banks respond to higher interest rates by providing more money.
• Investors respond to an increase in interest rates by investing more money.

Which organization is responsible for compiling and publishing national income indicators in Vietnam?

• Central Bank
• Ministry of Planning and Investment
• General Statistics Office
• Ministry of Finance

The market in which capital is transferred from savers to borrowers is called

• Commodity market
• Fund available market
• Derivative exchange market
• Financial market