If borrowers have greater confidence that they will be able to repay in the future, ___________________. Question 1 The demand for financial capital will remain unchanged. The demand for financial capital will increase. The demand for financial capital will decrease. The supply of financial capital will decrease.
If borrowers have greater confidence that they will be able to repay in the future, ___________________.
Question 1
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The demand for financial capital will increase. |
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The demand for financial capital will decrease. |
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The supply of financial capital will decrease. |
Financial capital is defined as an economic resource that is measured in terms of money and is used by the entrepreneurs and businesses to buy what they need to make the products or provide goods and services on which their operations are based such as investment banking, retail, corporate, etc. Financial capital can also be defined as the internal retained earnings generated by an entity, or it is provided by the lenders to businesses to purchase the real capital equipment or services for producing the goods and services in the economy.
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