Examlex
What are M1 and M2?
Loanable Funds
The total quantity of funds available for borrowing in the financial markets, determined by savings and the willingness of individuals and institutions to lend.
Interest Rates
The cost of borrowing money or the return for lending money, typically expressed as a percentage of the principal amount per annum.
Loanable Funds
The sum of money available for borrowing in the financial markets, where interest rates adjust to match supply and demand.
Interest Rate
The proportion of a total amount of money levied for borrowing it, usually shown as an annual rate percentage.
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