Savers supply funds to those who want to borrow for their investment spending needs in the:
A) market for loanable funds.
B) market for savings.
C) market for interest rates.
D) stock market.

Question

Quizplus · Accepted Answer

The market for loanable funds is where savers (suppliers of funds) provide funds to borrowers (demanders of funds) for investment spending needs. This market determines the interest rate, which serves as the price for borrowing and lending funds. The market for savings and the market for interest rates are not specific markets related to borrowing and lending, and the stock market is not directly related to borrowing and lending but instead involves the buying and selling of shares in companies.

Savers Supply Funds to Those Who Want to Borrow for Their