As a key participant in financial transactions, individuals are ________.
A) net demanders of funds because they save more money than they borrow
B) net users of funds because they save less money than they borrow
C) net suppliers of funds because they save more money than they borrow
D) net purchasers of funds because they save more money than they borrow

Question

Quizplus · Accepted Answer

Individuals are net suppliers of funds because they save more money than they borrow. This is because individuals typically save a portion of their income and deposit it in financial institutions such as banks, which then lend out those funds to borrowers. Therefore, individuals are contributing to the overall supply of funds in the financial market.

As a Key Participant in Financial Transactions, Individuals Are ________