The financial institutions play an important role in transferring the savings of the individuals to the investments by businesses. Which of the following correctly states this transfer?
A)banks collect the savings and lend the funds to the government who in turn redistribute it through different kinds of subsidies. B) Banks collect the savings and invest it in the stock market.
C)Banks collect the savings, rewarding the savings by interest.and dividend payments and, lend the funds to businesses who in turn buy equipment, factories and capital goods.
D) financial institutions do not have a major role in this process.
C)Banks collect the savings, rewarding the savings by interest.and dividend payments and, lend the funds to businesses who in turn buy equipment, factories and capital goods.
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For a monopoly earning positive economic profits at the profit-maximizing output level, all of the following are true EXCEPT
A. P > MR. B. P > MC. C. P = MR. D. P > ATC.
Clipping coins created inflation because:
A. it decreased the money supply. B. it decreased the stock of capital goods. C. it increased the stock of capital goods. D. it increased the money supply.
Suppose when the price of shoe laces goes from $1 to $2 per pair, production increases from 95 million pairs to 105 million pairs per year. Using the mid-point method, the price elasticity of supply is:
A. 66 percent B. 10.5 percent C. 0.15 D. 6.28
Given the broadest interpretation of technology, technology will include which of the following?
A) how well firms are run B) the organization and sophistication of markets C) the political environment D) the list of blueprints defining the types of products and the techniques available to produce them E) all of the above