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Question
In price determination, which pairing correctly identifies demand and supply of funds?
Options
Brokers: demand; discount houses: supply of funds
Business organisations: demand; households: supply of funds
Households: demand; business organisations: supply of funds
Government securities: demand; trade bills: supply of funds
MCQ
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Solution
Business organisations are the demand side, and households are the supply-of-funds side. Their interaction determines price in the financial market.
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