Which of the following counts as part of the supply of loanable funds?

A) Bank deposits and purchases of bonds
B) Bank deposits but not purchases of bonds
C) Purchases of bonds but not bank deposits
D) Neither purchases of bonds nor bank deposits

Supply of Loanable Funds

The total amount of funds available for borrowing in the financial markets, determined by savings and influenced by interest rates.

Bank Deposits

Sums of money placed into an account in a bank for safekeeping, which can include savings, checking, and other types of accounts.

Purchases of Bonds

Transactions where investors lend money to entities (corporate or sovereign) by buying their debt securities, known as bonds.