Respuesta :
The source of the supply of loanable funds is saving and the source of demand for loanable funds is investment.
Investments are financial commitments made to acquire assets in the hopes that their value would rise over time. Investment necessitates the loss of a current resource, such as time, money, or effort. In the world of finance, investing is done in order to profit from the asset being put to use. A capital gain or loss realized from the sale of a piece of property or investment, unrealized capital gains, investment income like dividends, interest, or rental income, or a combination of capital gains and income can all be included in the return.
The return may also include foreign exchange profits or losses as a result of shifting exchange rates. Riskier investments typically provide better returns, according to investors.
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