China's capital market is: a. efficient because it lends to ...

[wenmo]

China's capital market is:
 a. efficient because it lends to large companies
  b. is comprised of private lenders who are willing to led for long maturities
  c. noted for lending based on political considerations
  d. does not discriminate between public and private borrowers
  e. none of the above

Question 2

Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?
 a. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency falls.
  b. The quantity of real loanable funds per time period falls, and nominal value of the domestic currency rises.
  c. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency remains the same.
  d. The quantity of real loanable funds per time period falls, and nominal value of the domestic currency falls.
  e. There is not enough information to determine what happens to these two macroeconomic variables.

[vkodali]

Answer to Question 1

C

Answer to Question 2

.B