The shift of demand curve to down and then to the left resulting in _____________?
Correct answer: B. decreases in funds traded
- A. support from World Bank
- B. decreases in funds traded
- C. increase in funds traded
- D. rise of international funds
Explanation
A leftward shift in the demand curve means borrowers want fewer funds at each interest rate, so the equilibrium amount of funds traded decreases. A downward movement alone can reflect a lower interest rate, but the stated leftward shift supports option b.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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