Which of the following counts as part of the supply of loanable funds?
A)Bank deposits and purchases of bonds
B)Bank deposits but not purchases of bonds
C)Purchases of bonds but not bank deposits
D)Neither purchases of bonds nor bank deposits

Question

Quizplus · Accepted Answer

Bank deposits and purchases of bonds both contribute to the supply of loanable funds. Bank deposits increase the funds available for banks to lend out, while purchasing bonds provides capital to entities that issue bonds, effectively lending them money.

Which of the Following Counts as Part of the Supply