The key participants in financial transactions are individuals, businesses, and governments.Individuals are net ___________of funds, and businesses are net ___________of funds.

Question

Quizplus · Accepted Answer

In financial transactions, individuals and businesses can both be suppliers (providing goods or services) or demanders (seeking goods or services). However, when it comes to the transfer of funds, individuals are usually net purchasers (buying more than they sell) while businesses are usually net suppliers (selling more than they buy). Therefore, the best choice is C, where individuals are classified as demanders and businesses as suppliers. Option A is not ideal because individuals and businesses can both be purchasers or sellers. Option B is also not ideal because individuals and businesses can both be suppliers or demanders depending on the context. Option D is not ideal because it does not cover businesses and governments, who are also major participants in financial transactions.

The Key Participants in Financial Transactions Are Individuals, Businesses, and Governments.Individuals