Question

What can​ low-income countries do in order to increase the amount of loanable funds available to firms for investment projects such as new factories or improved​ technology?

Answer 1

What these countries can do in order to increase the amount of loanable funds is provide savings incentives.
This way, more people and companies will save their money, and thus there will be more loanable funds to be taken. These countries cannot simply print more money, as that would lead to inflation. Increasing interest rate will only deter people from borrowing money. And given that these two answers are incorrect, all of the above cannot be the correct answer either.