Financial Instruments Are Used to Channel Funds From

question 55

Multiple Choice

Financial instruments are used to channel funds from:

• A)Savers to borrowers in financial markets and via financial institutions
• B)Savers to borrowers in financial markets but not through financial institutions
• C)Borrowers to savers in financial markets but not through financial institutions
• D)Borrowers to savers through financial institutions, but not in financial markets

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Definitions:

Average Amount

The mean sum of a group of numbers, calculated by dividing the total by the quantity of numbers.

Weighted Average Float

The average time between when a check is deposited in a bank and when the funds are available.

Payments

Transactions or transfers of money or its equivalent from one party to another as a form of exchange for goods, services, or to fulfill a legal obligation.