The demand for loanable funds comes from saving and the supply of loanable funds comes from investment.

Question

Quizplus · Accepted Answer

The demand for loanable funds comes from investment, as businesses and individuals seek to borrow money to invest in various projects, while the supply of loanable funds comes from saving, as households and entities save their excess income in banks or other financial instruments, making these funds available for lending.

The Demand for Loanable Funds Comes from Saving and the Supply