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According to the loanable funds theory, who are the main net suppliers of fund

According to the loanable funds theory, households are the primary net suppliers of funds because they save a portion of their income. These savings are then made available to borrowers in the financial market, enabling investments and lending activities by... Read More

1 FINANCE MCQS

According to the loanable funds theory, who are the main net suppliers of fund

  • Insurance companies
  • Government
  • Corporations
  • Households
Correct Answer: D. Households

Detailed Explanation

According to the loanable funds theory, households are the primary net suppliers of funds because they save a portion of their income. These savings are then made available to borrowers in the financial market, enabling investments and lending activities by corporations and governments.

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