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What is the market for loanble funds? Please explain it with your own words. Who is...

What is the market for loanble funds? Please explain it with your own words. Who is demanding loans and who is supplying loans? Can you think about a substitute word for demand loans and one for supply loans?

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Answer #1

Market for loanable funds refers to market for borrowing and lending funds. Here the individuals and businesses will demand funds for meeting their personal/ business needs. The banks or financial institutions are the ones who lend/ supply loans.

Demand loan meand BORROW and supply loans means LEND.

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