When the quantity of bonds demanded equals the quantity of bonds supplied,there is
A) excess supply.
B) excess demand.
C) a market equilibrium.
D) an asset market approach.

Question

Quizplus · Accepted Answer

When the quantity of bonds demanded equals the quantity of bonds supplied, it means there is no excess demand or excess supply. Hence it is a market equilibrium where market forces of demand and supply have balanced each other.

When the Quantity of Bonds Demanded Equals the Quantity of Bonds