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Kisachek [45]
3 years ago
14

Which of the following transfers are available in getting money from individual savers to a business firm?

Business
1 answer:
lbvjy [14]3 years ago
7 0

Answer: d. All of the choices are correct.

Explanation:

The funds that are provided by individual savers to firms for expansion are a very integral part of the financial system as they allow for companies to expand thus increase the Economy's productivity.

Some ways they can get their funds to business firms include;

  • Direct transfers of money when the company offers its stocks or bonds to directly individual savers who will then buy it from them with the money paid going towards the welfare of the business.
  • Indirect transfers through an investment banking firm who act as intermediaries in stock and bond issues. Individual savers will communicate with the investment banks and then buy the stock and bonds from them.
  • Indirect transfers through a financial intermediary can occur when savers pull their funds together in an institution such as a bank or mutual fund that will then invest in businesses for them.
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