Attempts $$

Do No Harm $/3$

$2.$ The transfer of capital between savers and lenders

Some people spend more than their current incomes, while others spend less. To finance their spending, the former will have to draw down their savings or borrow the additional funds. The latter have the opportunity to save and thereby increase their spending capability in the future.

Read the following paragraph. Then, click on the blank lines and choose the answer that best completes each sentence.

A $$ is a system of individuals and institutions, instruments and procedures that bring together borrowers and savers and facilitate the flow of capital between them. The existence of these entities $$ the standard of living in the economies that employ them. They allow individuals, businesses, and governmental units to transfer income between time periods and from those with $$ of funds to those with $$

Financial transfers of capital generally take one of three forms. In the following table, correctly identify the methods of transfer being described.

$\backslash$table$[[\backslash$table$[[$Scenario$]],\backslash$table$[[$Direct$],[$Transfer$]],\backslash$table$[[$Transfer through an$],[$Investment Banking$],[$House$]],\backslash$table$[[$Transfer through a$],[$Financial$],[$Intermediary$]]],[\backslash$table$[[$Two years ago, Zachary started a new business. Now he needs additional$],[$capital to finance additional growth and is meeting with a group of "angel"$],[$investors$.$ If they decide to make the loan, they will do so directly, without the$],[$use of a middleman or other intermediary.$]],,$O$,$O$],[\backslash$table$[[$Wellington Industries would like to borrow additional debt capital. The firm has$],[$hired a firm to assist in the sale of a new issue of $10-$year bonds.$]],0,$O$,],[\backslash$table$[[$Anderson Animations, Inc. holds cash balances in an institution that, in turn,$],[$loans out the funds to other individuals and companies.$]],,$O$,$O$]]$