Question

In the financial system a) Savers obtain excess funds in order to finance capital investment projects....

In the financial system

a) Savers obtain excess funds in order to finance capital investment projects.

b) Lenders give excess funds to savers.

c) Financial intermediaries are a means for savers and borrowers to engage in direct finance.

d) The majority of borrowing and lending is through indirect finance.

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Answer #1

d) The majority of borrowing and lending is through indirect finance.

Explanation: The financial system acts as an intermediary between the savers and borrowers to make indirect finance take place.

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