If an individual sells a U.S. Treasury bill and uses the funds to open a money market deposit account, it is an example of
A) consumption.
B) direct finance.
C) tax avoidance.
D) financial intermediation.

Question

Quizplus · Accepted Answer

Selling a U.S. Treasury bill and using the funds to open a money market deposit account involves using a financial intermediary (i.e., the bank or financial institution where the account is opened) to channel the funds from the Treasury bill to the money market deposit account. This is an example of financial intermediation.

If an Individual Sells a U