Who Benefits from the Process of Financial Intermediation

question 157

Multiple Choice

Who benefits from the process of financial intermediation?

• A) Savers only.
• B) Borrowers only.
• C) Both savers and borrowers.
• D) There is no benefit, because money does not create wealth.

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Definitions:

Net Realisable Value

The estimated selling price in the ordinary course of business minus any costs necessary to make the sale, used primarily in inventory valuation.

Inventory Accounts

Accounts used in accounting to track the cost of the inventory held by a business until it is sold or otherwise disposed of.

Cost of Goods Manufactured

The total cost of producing goods during a specific period, including materials, labor, and overhead.

Total Manufacturing Costs

The aggregate cost of direct materials, direct labor, and manufacturing overhead incurred for products produced.