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drop down is the same for each of the four questions :-) 3. Three methods of funds and security transfer between financial market participants There

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drop down is the same for each of the four questions :-)

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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: A flow of money from the borrower to the financial intermediary A flow of money from the saver to the borrower A flow of securities from the saver to the financial intermediary A flow of securities from the borrower to the financial intermediary

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