MCQOPTIONS
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				| 1. | 
                                    When interest rate is lower than equilibrium rate of borrowing loanable funds, then the financial system has | 
                            
| A. | surplus of funds | 
| B. | deficit of funds | 
| C. | short-term funds | 
| D. | long-term funds | 
| Answer» C. short-term funds | |