one of ghanas top trading partners is india. the currency in ghana is the cedi and the currency in india is…

one of ghanas top trading partners is india. the currency in ghana is the cedi and the currency in india is the rupee. which of the following is a likely consequence of an increase in business optimism in ghana? choose 1 answer: a a depreciation of the cedi against the rupee b an increase in the demand for loanable funds in india c a depreciation of the rupee against the cedi d an increase in the supply of loanable funds in ghana e lower real interest rates in ghana

one of ghanas top trading partners is india. the currency in ghana is the cedi and the currency in india is the rupee. which of the following is a likely consequence of an increase in business optimism in ghana? choose 1 answer: a a depreciation of the cedi against the rupee b an increase in the demand for loanable funds in india c a depreciation of the rupee against the cedi d an increase in the supply of loanable funds in ghana e lower real interest rates in ghana

Answer

Brief Explanations:

When there is an increase in business optimism in Ghana, businesses will want to expand and invest more. This leads to an increased demand for loanable funds in Ghana. As the demand for loanable funds rises, interest rates tend to go up, not down. Also, this situation is mainly about Ghana's domestic financial - market changes due to business optimism, not directly related to India's loanable funds market or currency exchange rates between the cedi and the rupee.

Answer:

There is no correct option provided in the given choices as the most likely consequence is an increase in the demand for loanable funds in Ghana (but this is not among the options in a correct form). If we assume the closest relevant concept among the options, none of them are entirely accurate, but if forced to choose, an increase in business optimism in Ghana may lead to more borrowing and potentially a situation where the demand for loanable funds in Ghana is affected, and none of the other options about currency depreciation between cedi - rupee or loanable funds in India or lower interest rates in Ghana are correct in this context.