Financial institutions move money from Question 29Select one:a.sellers to buyersb.buyers to sellersc.savers to borrowersd.borrowers to savers
Question
Financial institutions move money from
Question 29
Select one:
- a. sellers to buyers
- b. buyers to sellers
- c. savers to borrowers
- d. borrowers to savers
Solution
The correct answer is c. Financial institutions move money from savers to borrowers.
Here's a step-by-step explanation:
-
Savers deposit their money in financial institutions. These can be banks, credit unions, or other types of financial entities.
-
These institutions then lend out this money to borrowers. Borrowers can be individuals, businesses, or even governments.
-
The borrowers use this money for various purposes - to buy a house, start a business, fund a project, etc.
-
The borrowers then repay the loan to the financial institution, often with interest.
-
This interest is then partly given back to the savers as a return on their deposits.
So, in essence, financial
Similar Questions
financial institutions attract funds from savers by offering ____________ on savings.Question 36Select one:a.profitsb.interestc.revenuesd.benefits
Who participates in Capital MarketAnswer choicesSelect only one optionREVISITSuppliers of fundsBorrowers of fundsGovernmentBoth A and C
Demand for money in the money market is _____, while in the loanable funds market to demand for money is ____.
Which of the following is a segment of the money market? A. Foreign exchange market B. Stock market C. Real estate market D. Commodity market
Which of the following is not a common feature of a financial institution?
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.