The right to earn interest is the incentive that motivates people to supply loanable funds to the loanable funds market.

Name: The right to earn interest is the incentive that motivates people to supply loanable funds to the loanable funds market.
Brand: Quizplus
Rating: 5.0 (46 reviews)

Question

Quizplus · Accepted Answer

The prospect of earning interest on loaned funds serves as a primary incentive for lenders to supply capital to the loanable funds market, as it compensates them for the risk and the opportunity cost of lending their money.

The Right to Earn Interest Is the Incentive That Motivates