The less liquid markets are:
A)the smaller the supply of loanable funds,and the slower the growth in the economy.
B)the larger the supply of loanable funds,and the slower the growth in the economy.
C)the smaller the supply of loanable funds,and the faster the growth in the economy.
D)the larger the supply of loanable funds,and the faster the growth in the economy.

Question

Quizplus · Accepted Answer

Less liquid markets are characterized by fewer trading opportunities, which tends to reduce the volume of loanable funds available. This, in turn, slows down the growth in the economy, as businesses and individuals have less access to capital for investments and consumption.

The Less Liquid Markets Are