Most funds that flow between lenders and borrowers:

Question

Quizplus · Accepted Answer

Most funds that flow between lenders and borrowers flow indirectly through financial intermediaries such as banks, mutual funds, or insurance companies. These intermediaries collect funds from savers and then lend them to borrowers who need funds for various purposes such as investments, purchases, or debt payments. Intermediaries earn money by charging interest on the loans they provide and paying lower interest rates to the savers who deposit money with them. This process of intermediation helps to efficiently allocate capital in the economy and reduce risks for both lenders and borrowers.

Most Funds That Flow Between Lenders and Borrowers