The main reason for borrowing and lending in the economy is a) that revenues and…

The main reason for borrowing and lending in the economy is
a)
that revenues and expenditures are not exactly equal during each time period for most
households and firms.
b)
the use of paper money instead of gold or silver which has a high intrinsic value.
c)
the desire of bondholders to be able to exchange their bonds for other claims.
d)
a shortage of money in the economy, making trade in other financial assets necessary.