Borrowers generally demand funds through the financial system in order to
A)purchase consumer durables, houses, or business plant and equipment.
B)pay taxes or other obligations to the government.
C)purchase food, clothing, or other nondurables.
D)meet business payrolls or other short-term business obligations.

Question

Quizplus · Accepted Answer

Borrowers typically seek funds from the financial system when they need to make larger purchases such as consumer durables, houses, or business plant and equipment. Obtaining a loan allows borrowers to secure the necessary funds to make these purchases and then repay the loan over time. While the other options listed may also require the use of funds, they are typically not the primary reason borrowers seek funds through the financial system.

Borrowers Generally Demand Funds Through the Financial System in Order