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Businesses, individuals, and governments often need to raise capital, while others have surplus funds. In a...

Businesses, individuals, and governments often need to raise capital, while others have surplus funds. In a well-functioning economy, capital flows efficiently from those with surplus capital to those who need it. Transfers can take place in 3 ways: -Select-indirect, direct transfers without going through any type of financial institution, -Select-indirect, direct transfers through investment banks that underwrite the securities, and indirect transfers through financial -Select-agencies, intermediaries, funds that create new forms of capital.

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Answer #1

FIRST ANSWER : DIRECT TRANSFER (Direct Transfers of money and securities takes place when a business sells its stocks or bonds directly to savers, without going through any type of financial institution.)

SECOND ANSWER : INDIRECT TRANSFER (savers money passes through them to businesses)

THIRD ANSWER : INTERMEDIARIES (person deposits money in a bank, then bank issues a loan )

(THUMBS UP PLEASE)

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