Buyers of financial claims lend their excess funds because they:

Question

Quizplus · Accepted Answer

Buyers of financial claims lend their excess funds because they want surplus funds in the future. Essentially, they want to save their money for later use and earn interest on it in the meantime. Option A is incorrect because the buyers are not necessarily expecting to borrow extra funds in the future. Option C is incorrect because it refers to investing rather than lending. Option D is incorrect because it suggests that buyers want to increase their costs, which is unlikely to be their motivation for lending money.

Buyers of Financial Claims Lend Their Excess Funds Because They