When interest rate is higher than equilibrium rate of borrowing loanable funds then financial system has

When interest rate is higher than equilibrium rate of borrowing loanable funds then financial system has Correct Answer surplus of funds

When interest rate is higher than equilibrium rate of borrowing loanable funds then financial system has surplus of 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.
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