The term 'loanable funds' refers to:
A) only those funds loaned to banks by the central bank.
B) only those funds loaned by one bank to another bank.
C) only those funds loaned to banks by the public.
D) all those funds changing hands between the lenders and borrowers in the financial markets.

Question

Quizplus · Accepted Answer

Loanable funds refer to all funds that are available for lending and borrowing in financial markets, including those that are transferred between lenders and borrowers. This includes funds loaned by banks to other banks, funds loaned to banks by the public, and funds available in capital markets for lending and borrowing.

The Term 'Loanable Funds' Refers To