Funds demand which is pushed by users of funds in financial markets are classified as
A
supply of loan-able funds
B
demand of loan-able funds
C
compounded funds
D
savings funds
Correct Answer: demand of loan-able funds
Funds demand which is pushed by users of funds in financial markets are classified as demand of loan-able funds. The demand for loanable funds represents the behavior of borrowers and the quantity of loans demanded. The lower the interest rate, the less expensive it is to borrow.