Case Interview Prep

Answer: B - The loanable funds market brings savers and borrowers together to finance expenditures.

Key Takeaway: A loanable funds market facilitates the availability of funds to finance expenditures such as consumption or investment to borrowers. Savers provide the money or the loanable funds to the borrowers through the sale of bonds, for example, and the borrowers use that to consume goods or services or investments.