Which of the following chains of logic explain the functions of banks in the process of economic growth?
A) Savers deposit their savings in banks.Banks direct these funds to firms that invest and engage in capital accumulation that furthers economic growth.
B) Savers deposit their savings in banks.Banks engage in capital accumulation,which plays an important role in economic growth.
C) Firms borrow from stock and bond markets issued through banks.These funds are used for investment,which leads to the capital accumulation that furthers economic growth.
D) The demand for loanable funds is determined by banks and that demand fuels investment that in turn furthers economic growth.

Question

Quizplus · Accepted Answer

This chain of logic explains the intermediation role of banks, where savers deposit their savings, which are then directed by banks to firms that invest and engage in capital accumulation, ultimately leading to economic growth.

Which of the Following Chains of Logic Explain the Functions