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A) Household or Businesses/Government B) Household or Businesses/Government C) Greater than, less than, or equal to D) Primary or secondary Claim The U.S. financial system
A) Household or Businesses/Government
B) Household or Businesses/Government
C) Greater than, less than, or equal to
D) Primary or secondary Claim
The U.S. financial system is an integral part of the U.S. economy. The financial system consists of lenders, borrowers, and intermediaries, as well as the flow of funds between these entities. The following diagram gives a snapshot of the U.S. financial system. Based on your understanding of the flow of funds in the system, label the missing elements. From: MOYER/MCGUIGAN/RAO. Contemporary Financial Management (with Thomson ONE Business School Edition), 14E. @ 2012 South-Western, a part of Cengage Learning, Inc. Reproduced by permission. www.cengage.com/permissions. A B Theoretically, the saving investment cycle shows that in an economy as a whole, the actual savings for a given period of time must be the actual investments. Sheila deposited $5,000 in a bank savings account. This flow of funds from Sheila to the bank account is considered to be a: Primary claim Secondary claimStep by Step Solution
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