Q509
Funds demand which is pushed by users of funds in financial markets are classified as
A.
supply of loan-able funds
B.
demand of loan-able funds
AnswerC.
compounded funds
D.
savings funds
Answer: Option B
Solution
Answer: Option B
Solution:
Funds demand which is pushed by users of funds in financial markets are classified as demand of loan-able funds. The demand for loanable funds represents the behavior of borrowers and the quantity of loans demanded. The lower the interest rate, the less expensive it is to borrow.