The savings-investment process
A)involves the transfer of business funds to individuals for investing in stocks and bonds
B)involves the transfer of business funds to individuals for investing in homes
C)involves the transfer in individual savings to the Federal Government.
D)involves the transfer in individual savings to business firms in exchange for their securities.

Question

Quizplus · Accepted Answer

The savings-investment process involves the transfer of individual savings to business firms in exchange for their securities, such as stocks and bonds. This enables businesses to invest in new projects, expand their operations, and create jobs. The process ultimately leads to economic growth and development. Options A and B are incorrect as they involve individuals investing in stocks, bonds, and homes, rather than businesses investing in new projects. Option C is incorrect as there is no direct transfer of individual savings to the Federal Government in the savings-investment process.

The Savings-Investment Process