4-可贷资金市场.pptVIP

It might be worth elaborating for a moment on “financial markets help allocate the economy’s scarce resources to their most efficient uses.” The scarce resources this statement refers to are the loanable funds. They are scarce because there are more investment projects needing funding than funds available. So how should the scarce funds be allocated? I.e., which investment projects should get the available funds? The investment projects with the highest expected returns, of course. And the projects with the highest expected returns would have the highest willingness to pay for funds.