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Demand for loans curve
a downward sloping curve showing the negative relationship between the interst rate and the quantity of loans demanded, other things constant
Supply of Loans curve
an upward-sloping curve showing the positive relationship between the interest rate and the quantity of loans supplied, other things constant.
Market for loans
The market that brings together borrowers (the demanders of loans) and savers (the supplies of loans) to determine the market interest rate
Equilibrium interest rate
The only interest rate at which the quantity of loans demanded equals the quantity of loans supplied
Banks and other institutions that serve as go-betweens, accepting funds from savers and lending them to borrowers
interest rate charged by banks to their largest, most secure, and creditworthy customers on short-term loans; used as a guide for deciding interest rates for other borrowers
An asset owned by the borrower that can be sold to pay off the loan in the event the loan is not repaid.
A contact promising to repay borrowed money on a designated date and pay interest along the way
One firm combines with another from which it buys inputs or to which it sells output, such as a merger between a steel producer and an automaker
One firm combines with another firm in a different industry, such as a merger between a plastics maker and an electronics firm
A large corporation that makes and sells its products around the world.
fund that pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets; a regulated investment company with a pool of assets that regularly sells and redeems its shares
a bond issued by a state or local government or municipality to finance such improvements as highways, state buildings, libraries, parks and schools
a corporation's written pledge that it will repay a specified amount of money with interest; A bond that a corporation issues to raise money to expand its business
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