loanable funds theory

Definition

Financial assets or money that is available to borrow. This theory is based on the concept that corporations providing goods and services demand capital. Purchasers of goods and services provide capital. Borrowers demand loanable funds that are indirectly made available by savers who allow banks access to their assets.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
loan value loanback