An Institution That Collects Funds from Lenders and Distributes These

question 138

Multiple Choice

An institution that collects funds from lenders and distributes these funds to borrowers is called

• A) a financial intermediary.
• B) the Federal Reserve System.
• C) a mercantile exchange.
• D) a currency market.

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Definitions:

Cash Flows

The net amount of cash being transferred into and out of a business, indicating its liquidity level over a period.

Financing Activities

These are activities that result in changes in the size and composition of the equity capital or borrowings of the entity.

Schedule

A plan that lists events, activities, or tasks along with their intended or expected times and dates.

Investing Activities

Part of a company's cash flow statement that shows the amount of money spent or generated from various investment-related activities in a specific time period.