The financial markets play an important role in channeling funds from savers to borrowers. Which of the following illustrates this function of financial markets? Investors purchase assets like real estate and gold from other investors. Investors purchase capital goods which are used in production by borrowers. Investors deposit funds into interest-bearing accounts which are then loaned to borrowers. Investors purchase securities that are issued by firms and governments.

Ans.(Option C) Investors deposit funds into interest-bearing accounts which are then loaned to…

Answered: The financial markets play an important…

Business

Accounting

The financial markets play an important role in channeling funds from savers to borrowers. Which of the following ill

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The financial markets play an important role in channeling funds from savers to borrowers. Which of the following illustrates this function of financial markets?

Investors purchase assets like real estate and gold from other investors.
Investors purchase capital goods which are used in production by borrowers.
Investors deposit funds into interest-bearing accounts which are then loaned to borrowers.
Investors purchase securities that are issued by firms and governments.

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