Which of the Following Is an Example of Financial Intermediation

question 124

Multiple Choice

Which of the following is an example of financial intermediation?

• A)John buys shares of stock issued by a fast food company.
• B)A foreign government buys bonds issued by the U.S.Treasury.
• C)Susan makes a deposit at a bank and the bank uses this money to make an auto loan to Ferguson.
• D)None of the above is correct.

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Definitions:

Political Balance

Refers to the equilibrium achieved within a political system when power is evenly or appropriately distributed among various parties or branches of government, avoiding dominance by any single entity.

Nominations

The act of formally proposing a candidate for a position, award, or office, often within the context of politics, entertainment, and other fields.

$4 Trillion Debt

A monetary amount representing the scale of owed funds, possibly pertaining to national debt or a significant financial obligation of a large entity.

Ongoing Costs

Continuous or recurring expenses associated with maintaining a project, venture, or lifestyle, which do not end after the initial purchase or investment.