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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
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Solution

The correct answer is c. Financial institutions move money from savers to borrowers.

Here's a step-by-step explanation:

  1. Savers deposit their money in financial institutions. These can be banks, credit unions, or other types of financial entities.

  2. These institutions then lend out this money to borrowers. Borrowers can be individuals, businesses, or even governments.

  3. The borrowers use this money for various purposes - to buy a house, start a business, fund a project, etc.

  4. The borrowers then repay the loan to the financial institution, often with interest.

  5. This interest is then partly given back to the savers as a return on their deposits.

So, in essence, financial

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