A. supply of loan-able funds
B. demand of loan-able funds
C. compounded funds
D. savings funds
✅ The correct answer is option B.
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.
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.