Final answer:
Investing in short-term marketable securities increases a manufacturer's liquidity by enhancing the ease with which assets can be converted to cash. An increase in loans is driven by both higher demand and supply, while interest rates drop with a decrease in demand or an increase in supply of loanable funds.
Step-by-step explanation:
When a manufacturer invests in short-term marketable securities, it typically increases its liquidity. This is because these securities can be quickly and easily converted into cash, making assets more liquid. On the other hand, addressing the changes in the financial market, an increase in the quantity of loans made and received would likely result from both a rise in demand for loans and a rise in supply of loanable funds. Conversely, a fall in demand or a fall in supply would generally reduce the number of loans made and received. As for the interest rates, they tend to decline when there's a fall in demand for loans relative to the supply, or a rise in supply of loanable funds relative to the demand.