Studies of the major developed countries show that when businesses go looking for funds to finance their activities they usually obtain these funds from
A)government agencies.
B)equities markets.
C)financial intermediaries.
D)bond markets.

Question

Quizplus · Accepted Answer

Financial intermediaries, such as banks and other lending institutions, are the primary source of funding for businesses in developed countries. These intermediaries collect funds from savers and then lend them to businesses in need of investment capital. This system helps to ensure that capital is efficiently allocated to businesses with the highest potential returns. Equities and bond markets also provide sources of financing, but financial intermediaries are the main players in this market. Government agencies may also provide financing, but this is typically limited to certain sectors or industries.

Studies of the Major Developed Countries Show That When Businesses