1. supply of loan-able funds
  2. demand of loan-able funds
  3. compounded funds
  4. savings funds
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Answer: Option 2

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.

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