The three intermediation channels that transfer money from lenders to borrowers are
A)direct, indirect, and financial intermediation.
B)direct, indirect, and monetary intermediation.
C)direct, financial, and monetary intermediation.
D)indirect, financial, and monetary intermediation.

Question

Quizplus · Accepted Answer

The three intermediation channels that transfer money from lenders to borrowers are direct, indirect, and financial intermediation. Direct intermediation occurs when a borrower borrows directly from a lender, such as through a personal loan. Indirect intermediation involves an intermediary, such as a bank or other financial institution, that facilitates the transfer of funds from lenders to borrowers. Financial intermediation involves the use of financial instruments such as stocks and bonds to transfer funds from lenders to borrowers. Monetary intermediation is not a recognized intermediation channel.

The Three Intermediation Channels That Transfer Money from Lenders to Borrowers