Saving is o the source of the supply of loanable funds. the source of the demand...

Question

Question

Answer 1

Answer #1

Option A

Saving is the source of the supply of loanable funds.
In the market for loanable funds, saving and borrowing occurs between the savers and borrowers when they come together in the market.
Savings increase when the supply of loanable funds rise in the market, while the demand for loanable funds increases the borrowing.
Both these supply and demand of loanable funds determines how borrowing occurs in the market for loanable funds.

Answer 2

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