Which of the following is true in the context of the loanable funds market?
A) Savers are the suppliers of loanable funds, and borrowers are the demanders of loanable funds.
B) The supply of loanable funds curve slopes downward, and the demand for loanable funds curve slopes upward.
C) The supply of loanable funds curve reflects the negative relation between the market rate of interest and the quantity of savings.
D) Households play the role of financial intermediaries.
E) Banks pay a higher interest rate on consumer savings than what they could earn by lending these funds out.
Correct Answer:
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