Question

In the loanable funds market, – supply funds to – either directly or indirectly. A direct method is to buy –. The most common indirect method is to deposit money with –, which, in turn, make loans to borrowers. banksthe governmentthe borrower’s productsstocks and bondssaversborrowers.

Answer 1

The correct answer is Savers, Borrowers, Stocks and Bonds, Banks

Step-by-step explanation:

The market for loanable funds is one in which loanable funds are traded and, therefore, determines the interest rate of the funds based on supply and demand.

Go ahead that the market of loanable funds is a market. It seems obvious, but this fact greatly facilitates their understanding and explanation. Markets, as a general rule, are balanced according to the law of supply and demand. Now what is traded? Money is traded. Specifically, loanable funds.

Loanable funds, as defined by economic theory, are those funds available to lend in an economy. In an economy we can differentiate between those who "have" money "(savers) and those who need money (investors).

Technically, savers (who have money left over) are called surplus agents. Meanwhile, investors (who lack money) are known as agents with deficits.