A majority of lending from savers to borrowers takes place through
A)financial intermediaries.
B)stock and bond markets.
C)direct lending by the government.
D)private transactions among friends and relatives.

Question

Quizplus · Accepted Answer

The majority of lending from savers to borrowers takes place through financial intermediaries such as banks, credit unions, and other financial institutions. These intermediaries collect funds from savers and then lend them out to borrowers who require funds for various purposes such as buying homes, cars, and starting businesses. Financial intermediaries are essential in mobilizing savings and channelling them to productive uses in the economy. Stock and bond markets, direct lending by the government, and private transactions among friends and relatives are not the primary methods of lending and borrowing in the economy.

A Majority of Lending from Savers to Borrowers Takes Place