71 Institutions that help to channel funds from savers to borrowers are known asa) corporations.O b) Treasury firms.O c) financial intermediaries.O d) primary markets.e) secondary markets.

People do not consume their entire income rather they like to save a part of the income for future…

Answered: Institutions that help to channel funds…

Institutions that help to channel funds from savers to borrowers are known as a) corporations. b) Treasury firms. c) financial intermediaries. d) primary markets. e) secondary markets.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter21: Financial Markets, Saving, And Investment

Section: Chapter Questions

Problem 9P

See similar textbooks

Related questions

Q: What are the three distinct terms to describe taxes?

A: A tax is a unilateral payment made by the people towards the government for various purposes. The…

Q: The South Korean Government in the 1970s decided to follow a strategy of increased investment in…

A: Scarcity refers to the limited availability of resources, that are used to produce goods and…

Q: .How are the income taxes determined?

A: The income tax is the tax that is levied on the income of the people directly. It is collected,…

Q: Coffee Price Coffee Qty Water Price Water Quantity $3 Year 100 2020 (base) $4 $6 100 2021 120 $5 200

Q: b. Plot the after - tax price paid by consumers and the after - tax price received by sellers.…

A: Market dynamics are economic events that upset the supply-demand balance, causing price and quantity…

Q: ermanent Residents may apply for a Visa and be admitted to the United States with no waiting period.

A: The Legal Permanent resident of the USA is a Person who gets a Green Card from the USA government to…

Q: What are Corporate Taxes?

A: Taxes are the compulsory payments made by the individuals or firms to the central government. They…

Q: What are the procedures of Individual Income Taxes

A: Income tax refers to a tax imposed by the Central Authority on the income of the any individuals,…

Q: "Income taxes are based on a company's taxable income" Is this statement true or false?

A: Introduction The tax burden for a specific tax year is calculated using the portion of the taxable…

Q: Government-imposed taxes cause reductions in the activity that is being taxed, which has important…

A: There are many sub-parts of the question. As per honor code, we can only provide solution of first…

Q: taxable income on ructions, and publications, visit www.irs.gov or call RM (800-829-3676). u e-tile…

A: Implicit cost includes foregone income that could have been earned if resources were invested…

Q: Calculate Your Taxes To find your net pay, you'll need to first calculate your taxes. Start period…

A: When a person receives his/her income, he/she has to pay a certain number of taxes that include…

Q: Where do most city and local taxes come from

A: The local taxes are the most crucial part of local government. Such taxes are then used for distinct…

Q: property tax you pay? From the township, you must have received a letter indicating how much…

A: *Answer: Property tax refers to the amount of tax paid by an individual or corporation on the…

Q: Filing Status: Single Total Income: $73, 883 Income Adjustments: $0 Itemized Deductions: $14,239…

A: Total income- income adjustments- itemized deductions

Q: What are the two different ways most firms calculate depreciation?

A: Straight line depreciation method and double declining balance method are the two important methods…

Q: Jeff, a 56 year old professor is subject to a 28% tax rate. He has had a family emergency and must…

A: An individual has to pay 10% of the penalty plus tax on income to the government for withdrawal from…

Question

Institutions that help to channel funds from savers to borrowers are known as
a) corporations.
O b) Treasury firms.
O c) financial intermediaries.
O d) primary markets.
e) secondary markets.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Savers and borrowers

VIEW

Correct answer

VIEW

Incorrect options

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Imagine that a local water company issued 10,000 ten-year bond at an interest rate of 6. You are thinking about buying this bond one year before the end of the ten years, but interest rates are now 9. Given the change in interest rates, would you expect to pay more or less than 10,000 for the bond? Calculate what you would actually be willing to pay for this bond.
In the late 1990s, the U.S. government moved from a budget deficit to a budget surplus and the trade deficit in the U.S. economy grew substantially. Using the national saving and investment identity, what can you say about the direction in which saving on/or investment must have changed in this economy?
Why can firms not just use their own profits for financial capital, with no need for outside investors?
Suppose Ford Motor Company issues a five year bond with a face value of 5,000 that pays an annual coupon payment of $150. What is the interest rate Ford is paying on the borrowed funds? Suppose the market interest rate rises from 3 to 4 a year after Ford issues the bonds. Will the value of the bond increase or decrease?
Answer these three questions about early-stage corporate finance: Why do very small companies tend to raise money from private investors instead of through an IPO? Why do small, young companies often prefer an IPO to borrowing from a bank or issuing bonds? Who has better information about whether a small firm is likely to earn profits, a venture capitalist or a potential bondholder, and why?
Calculate the equity each of these people has in his or her home: Fred just bought a house for 200,000 by putting 10 as a down payment and borrowing the rest from the bank. Freda bought a house for 150,000 in cash, but if she were to sell it now, it would sell for 250,000. Frank bought a house for 100,000. He put 20 down and borrowed the rest from the bank. However, the value of the house has now increased to 160,000 and he has paid off 20,000 of the bank loan.
If you owned a small firm that had become somewhat established, but you needed a surge of financial capital to cant out a major expansion, would you prefer to raise the funds through borrowing or by issuing stock? Explain your choice.
Imagine that you are in the position of buying loans in the secondary market (that is, buying the right to collect the payments on loans) for a bank or other financial services company. Explain why you would be willing to pay more or less for a given loan If: The borrower has been late on a number of loan payments Interest rates In the economy as a whole have risen since the bank made the loan The borrower Is a firm that has just declared a high level of profits Interest rates in the economy as a whole have fallen since the bank made the loan
Why should a financial investor care about diversification?