Final answer:
A discount is a reduction in the price of a product to encourage consumer response, while interest rates decline with a rise in the supply of money, and loan quantities increase with a rise in demand or supply.
Step-by-step explanation:
Understanding Financial Market Dynamics
The financial term that refers to a reduction in the price of a product in order to obtain a response from consumers is B. discount. A discount is a decrease in the original price of goods or services, usually offered to increase sales, clear out inventory, or reward customers.
Regarding the changes in the financial market, a decline in interest rates is typically caused by C. a rise in supply of money or credit in the economy. Conversely, an increase in the quantity of loans made and received is more likely when there is A. a rise in demand for loans, or C. a rise in supply of available funds for lending.