Chapter 3 Assignment 3. Three methods of funds and security transfer between financial market participants There are three mechanisms used to move funds and securities between savers and investors. The following diagram illustrates a transfer made via a financial intermediary. Examine the diagram and use it to answer the following questions. Financial Intermediary Flow #1 Flow #2 Borrowers (Businesses) Savers (Investors) Flow #3 Pays a return/interest to attract funds from savers, and uses its funds to create loans and buy securities. Flow #4 Flow #1 represents: Flow #2 represents: Flow #3 represents: Flow #4 represents