The funds demand which is pushed by users of funds in the financial markets are classified as _________?
Correct answer: B. demand of loan-able funds
- A. supply of loan-able funds
- B. demand of loan-able funds
- C. compounded funds
- D. savings funds
Explanation
Users of funds, such as firms borrowing for investment, create demand in the loanable-funds market. Lenders and savers provide the corresponding supply of loanable funds.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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