The Three Intermediation Channels That Transfer Money from Lenders to Borrowers

question 8

Multiple Choice

The three intermediation channels that transfer money from lenders to borrowers are

• A)direct, indirect, and financial intermediation.
• B)direct, indirect, and monetary intermediation.
• C)direct, financial, and monetary intermediation.
• D)indirect, financial, and monetary intermediation.

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Definitions:

Outstanding Checks

Checks that have been written and recorded in a company’s ledger but have not yet been cleared or deducted from the bank account balance.

Credit Memo

A document issued by a seller to a buyer, reducing the amount owed by the buyer under certain circumstances, such as returned goods or an overcharge.

Debit Memo

A document issued by a seller of goods or services to a buyer, reducing the amount the buyer owes under the original invoice.

General Ledger

An exhaustive list of every financial transaction made by a company during its history, categorized by accounts.