A Company That Transfers Funds from Savers to Borrowers by Receiving

question 85

Multiple Choice

A company that transfers funds from savers to borrowers by receiving funds from savers and investing in securities issued by borrowers is known as a(n)

• A)broker.
• B)financial intermediary.
• C)stock exchange.
• D)venture capitalist.

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Definitions:

Marginal Utility

Extra pleasure or advantage gained by consuming one more unit of a good or service.

Utility Maximizing

The economic principle where consumers allocate their resources to maximize their overall satisfaction or utility.

Consumption Mix

Refers to the combination of goods and services consumed by an individual or within an economy.

Theory of Consumer Behavior

An economic framework describing how individuals make decisions to allocate their resources on consumption items, based on their preferences, income, and the prices of goods and services.