Final answer:
The suppliers of loanable funds are individuals and businesses who save or make financial investments. They expect to receive a rate of return on their investment.
Step-by-step explanation:
In financial markets, the suppliers of loanable funds are those who supply financial capital through saving or making financial investments. These suppliers can be individuals or businesses. They expect to receive a rate of return on their investment. For example, individuals who deposit their money in savings accounts or invest in stocks and bonds are suppliers of loanable funds. Similarly, businesses that save a portion of their profits or issue bonds to raise capital are also suppliers of loanable funds. The rate of return that these suppliers expect to receive can come in different forms, such as interest payments, dividends, or capital gains.