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Multiple Choice
The loanable funds market is best described as bringing together:
A
buyers and sellers of foreign currencies
B
savers who supply funds and borrowers who demand funds
C
producers and consumers of final goods
D
workers seeking jobs and firms offering employment
Verified step by step guidance
1
Understand the concept of the loanable funds market: it is a market where funds are borrowed and lent, typically involving savings and investment.
Identify the participants in the loanable funds market: savers supply funds by saving money, and borrowers demand funds to finance investments or consumption.
Recognize that the loanable funds market does not involve foreign currency exchange, which is a different market (the foreign exchange market).
Note that producers and consumers of final goods interact in the goods market, not the loanable funds market.
Understand that workers seeking jobs and firms offering employment participate in the labor market, which is separate from the loanable funds market.