The Financial System Is Primarily a Means by Which

question 57

Multiple Choice

The financial system is primarily a means by which

• A) funds are transferred from savers to borrowers.
• B) money is put into circulation.
• C) the government puts into operation its plans for the economy.
• D) business firms distribute their goods.

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Definitions:

MC

Marginal Cost, the increase in cost that arises from producing one additional unit of a good or service.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

AVC

Stands for Average Variable Cost, which is the total variable costs divided by the quantity of output produced.

Total Revenue

The sum of income a company receives from its business activities, usually from the sale of goods and services to customers.