The financial institutions play an important role in transferring the savings of the individuals to the investments by businesses. Which of the following correctly states this transfer?
A)banks collect the savings and lend the funds to the government who in turn redistribute it through different kinds of subsidies. B) Banks collect the savings and invest it in the stock market.
C)Banks collect the savings, rewarding the savings by interest.and dividend payments and, lend the funds to businesses who in turn buy equipment, factories and capital goods.
D) financial institutions do not have a major role in this process.
C)Banks collect the savings, rewarding the savings by interest.and dividend payments and, lend the funds to businesses who in turn buy equipment, factories and capital goods.
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A period of time against which costs of the market basket in other periods will be compared in computing a price index is called
A. the inflation period. B. the market basket. C. the adjustment period. D. the base period.
Which of the following is most likely to be a fixed cost?
A. Shipping charges. B. Property insurance premiums. C. Wages for unskilled labor. D. Expenditures for raw materials.