Final answer:
The market where loans are originally made to borrowers is called the primary loan market, while the market where existing loans are traded among financial institutions is known as the secondary loan market.
Step-by-step explanation:
The market in which loans are originally made to borrowers is known as the primary loan market. Banks and financial institutions often issue loans and might charge fees, but can then sell these loans to others who will manage and collect the loan payments. On the other hand, the market where these existing loans are bought and sold among financial institutions is referred to as the secondary loan market. This process allows for the liquidity of these loan assets, as their present value can be bought or sold based on what others are willing to pay for them, which is affected by risk factors and current interest rates in the economy.