Which of the Following Is Not a Source of Loanable

question 84

Multiple Choice

Which of the following is not a source of loanable funds?

• A) The saving of households.
• B) Business saving.
• C) Commercial bank lending.
• D) Government budget deficits.

---

Definitions:

Interest Payments

Payments made to lenders as compensation for borrowing money, typically calculated as a percentage of the loan amount.

Market Failure

A scenario in which the distribution of goods and services through a free market fails to be efficient, frequently resulting in a decrease in net social welfare.

Negative Externalities

Costs experienced by someone who is not directly involved in the production or consumption of a good or service.

Positive Externalities

Benefits experienced by third parties or society at large as a result of an economic activity, without the third party incurring any cost.