Households make their savings available to borrowers through
A) Resource markets.
B) The loanable funds market.
C) The labour market.
D) Taxes.

Question

Quizplus · Accepted Answer

The loanable funds market is where households make their savings available to borrowers. In this market, lenders supply funds (savings) and borrowers demand funds (credit), and the interest rate serves as the price that brings the supply and demand for loanable funds into balance. Therefore, option B is the correct answer. The other options are not relevant to the process of making savings available to borrowers.

Households Make Their Savings Available to Borrowers Through