We interpret the meaning of "loanable funds" as the
A)flow of resources available from private saving.
B)flow of resources available to fund private investment.
C)resources borrowed by private investors and by government.
D)resources lent by private investors and by government.

Question

Quizplus · Accepted Answer

Loanable funds refer to the amount of money available for borrowing from private savers and investors to fund private investment. This includes resources such as savings deposits, stocks, bonds and other financial assets that can be used to provide funds for investments. It does not refer to resources borrowed by private investors or government. The correct option is B.

We Interpret the Meaning of "Loanable Funds" as the