Q482
According to loanable funding theory, net suppliers of funds are
A.
insurance companies
B.
government
C.
corporations
D.
households
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
According to loanable funding theory, net suppliers of funds are households. According to this approach, the interest rate is determined by the demand for and supply of loanable funds. The term loanable funds includes all forms of credit, such as loans, bonds, or savings deposits.