Pooling of risk occurs when depository institutions A) make ...

[crazycityslicker]

Pooling of risk occurs when depository institutions
 
  A) make assets more liquid.
  B) specialize in loaning only to good borrowers.
  C) bring lenders together.
  D) lend to a variety of different borrowers.

Question 2

If the government begins to run a larger budget deficits, then assuming there is no Ricardo-Barro effect, the demand for loanable funds ________ and the real interest rate ________.
 
  A) decreases; falls
  B) decreases; rises
  C) increases; rises
  D) increases; falls

[lolol]

Answer to Question 1

D

Answer to Question 2

C

[crazycityslicker]

Thanks for the timely response, appreciate it

[Sarahjh]

Gracias!