Money is demanded in the form of loanable funds because it

Question

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Money is demanded as loanable funds because it provides the borrower with the ability to command resources, such as goods and services. Money is not inherently valuable in and of itself, and its value comes from the goods and services that it can be exchanged for. While money may not be as liquid as other forms of capital, such as stocks or bonds, it still serves as a medium of exchange and can be easily converted into other forms of capital if needed. Money also does not necessarily grow in value as it is held over time, and there are opportunity costs associated with holding onto cash instead of investing it in other forms of capital that have the potential to generate returns.

Money Is Demanded in the Form of Loanable Funds Because