Banks Act as Financial Intermediaries By

question 64

Multiple Choice

Banks act as financial intermediaries by:

• A)bringing together car buyers and auto dealers.
• B)bringing together real estate brokers and home buyers.
• C)printing money for all to use.
• D)serving the credit needs of borrowers and the security needs of savers.
• E)selling shares of stock to investors.

---

Definitions:

Credit Card Sales

Transactions in which customers use credit cards to pay for goods or services, creating a receivable for the seller until payment is processed by the card issuer.

Summary Journal Entry

A consolidated record that summarizes multiple transactions into a single entry within the accounting records.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a reduction in sales revenue.