Funds flow from lenders to borrowers
A)indirectly through financial markets.
B)directly through financial intermediaries.
C)indirectly through financial intermediaries.
D)primarily through government agencies.

Question

Quizplus · Accepted Answer

Funds flow from lenders to borrowers indirectly through financial intermediaries such as banks, mutual funds, and investment companies. These intermediaries pool funds from multiple lenders and invest them in various assets, including loans to borrowers. Therefore, funds do not flow directly from lenders to borrowers or primarily through government agencies, but through financial intermediaries in the form of loans, investments, or other financial instruments.

Funds Flow from Lenders to Borrowers