Loanable funds refer to funds that are borrowed or lent with the requirement of interest being paid for the use of the funds. This can include loans from banks, bonds, or other forms of debt financing. It does not refer to capital (A), investment funds (B), or gifts (C) with no promise of interest or repayment.

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Loanable Funds Are

Question 32

Multiple Choice

Loanable funds are

A) another term for capital.
B) a particular type of investment fund that companies such as Merrill Lynch offer to consumers.
C) funds that someone gives with no promise to pay or receive interest for the use of the funds.
D) funds that someone borrows or lends with the requirement that interest be paid for the use of the funds.

Correct Answer: