An indirect flow of funds occurs when
A) funds flow from saver-lenders to borrower-spenders through financial intermediaries.
B) funds flow from saver-lenders to borrower-spenders through financial markets.
C) funds flow to saver-lenders from borrower-spenders through financial intermediaries.
D) funds flow to saver-lenders from borrower-spenders through financial markets.
A
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A perfectly competitive market is characterized by the free entry and exit of firms
a. True b. False Indicate whether the statement is true or false
When each box in an organization chart contains individuals who specialize in some field, then the activities in the organization are categorized by _____
a. divisionalization b. functionalization c. decentralization d. de-integration
Consider three bonds, from Corporation X, Corporation Y, and Corporation Z. The X and Y bonds mature in 1 year, while the Z bond matures in 2 years. The Y and Z bonds have face values of $5,000 . while the X bond has a face value of $4,000 . If the interest rate is 10 percent (0.10) per year, rank the three bonds from highest present value to lowest present value
a. X, Y, Z b. Z, Y, X c. Y, Z, X d. Z, X, Y e. Y, X, Z
How do future expectations about the price of a good affect the present supply?
(A) If the price is expected to decrease, many producers will hold onto their supply. (B) If the price of a related good is expected to increase, only a few sellers will hold onto their supply until the increase occurs. (C) If the price is expected to increase, many producers will hold onto their supply. (D) If the price is expected to increase and then decrease, most sellers will hold onto their supply until the decrease has occurred.