# Chapter 3 Assignment 2. The transfer of capital between savers and lenders 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 employ them. They allow individuals, businesses, and governmental units to transfer income between time periods and from those with the standard of living in the economies that of funds to those with 22 17 Days Left BO Identify which fund transfer process each scenario best represents. Scenario Two years ago, Hubert 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 without the use of a middleman or other intermediary. Wellington Industries would like to borrow additional debt capital. The company has hired a firm to assist in the sale of a new issue of 10-year bonds. Anderson Animations, Inc. holds cash balances in an institution that, in turn, loans out the funds to other individuals and companies. Indirect Indirect Transfer Transfer through an through a Direct Transfer Investment Financial Banking House Intermediary O True or False: The existence of financial middlemen and financial intermediaries decreases the efficiency of the financial markets. True False Grade It Now Save & Continue Continue without saving