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21 February, 01:48

The actions of borrowers and lenders are coordinated by

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  1. 21 February, 02:45
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    the interest rate in the loanable funds market

    Explanation:

    The actions of borrowers and lenders are coordinated by:

    the interest rate in the loanable funds market
  2. 21 February, 04:31
    0
    The response options are:

    to. the interest rate in the loanable funds market

    b. the government in the resources market

    c. businesses in the resources market

    d. the interest rate in the goods and services market

    The correct answer is: a. the interest rate in the loanable funds market.

    Explanation:

    The market of loanable funds is one in which the 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).

    The financial system is regulated. This means that there are a series of mandatory rules or regulations. In other words, the financial system must ensure security and justice in the flow of money.

    Under these rules of conduct, the main objective of the financial system is monetary fluidity. That is, allow the transfer of money from savers to investors. Also, ensure that the money returns to savers (who lend money) and that investors (who borrow) return the money in the appropriate manner and terms.

    The market of loanable funds is not a physical market. It is a market that is made up of all savers, investors and financial intermediaries.
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