Intermediaries That Help the Financial System Operate Efficiently and Transfer

question 5

Multiple Choice

Intermediaries that help the financial system operate efficiently and transfer funds from savers and investors to individuals, businesses, and governments that seek to spend or invest the funds are known as:

• A)financial markets
• B)financial institutions
• C)securities markets
• D)government organizations

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Definitions:

Total Assets

The sum of all assets owned by a company, including current and non-current assets, as recorded in the balance sheet.

Ratio

A quantitative relationship between two numbers, showing how many times the first number contains the second or vice versa.

Direct Method

An accounting method used in cash flow statements that lists major cash inflows and outflows directly, without adjustments.

Cash Inflow

refers to the movement of money into a business, often from operations, financing, or investing activities, contributing to the company's cash balance.