Underlying idea:
Your investment is being financed by someone else’s saving.
Financial markets, unlike most other markets, serve the important role of linking the present and the future.
Those who supply loanable funds (savers) do so because they want to convert some of their current income into future purchasing power.
Those who demand loanable funds (borrowers) do so because they want to invest today in order to have additional capital in the future to produce goods and services.