The funds provided by the suppliers of the funds in the financial markets are classified as ____________?
Correct answer: C. supply of loan-able funds
- A. compounded funds
- B. savings funds
- C. supply of loan-able funds
- D. demand of loan-able funds
Explanation
Suppliers of funds provide the supply of loanable funds, mainly through savings that can be lent or invested. Demand for loanable funds comes from borrowers, so option d describes the opposite side of the market.
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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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