which-scenario-best-illustrates-the-role-of-loanable-funds-in-the-financial-syst

Question

Which scenario best illustrates the role of loanable funds in the financial system?

Accepted Answer

A bank uses household savings to provide loans to businesses for expansion.

Answer

A company reinvests its profits into new technology.

Answer

An individual purchases stocks in a tech company.

Answer

A government issues bonds to finance public projects.