In which of the following markets are funds demanded and supplied?
A) the labor market
B) the goods and services market
C) the money market
D) the factor market

Question

Quizplus · Accepted Answer

Funds are demanded and supplied in the money market. This is the market where financial institutions and individuals trade short-term debt securities and other monetary instruments. The supply of funds comes from those who have excess cash and want to earn a return on their savings, while the demand for funds comes from those who need to borrow money for a variety of reasons. The labor market is for the buying and selling of labor services, the goods and services market is for the buying and selling of physical goods and services, and the factor market is for the buying and selling of factors of production such as land, labor, and capital.

In Which of the Following Markets Are Funds Demanded and Supplied