The most important savings surplus unit in the economy is: Answer a.the savings of individuals b.corporate savings c.U.S. government savings d.state and local government savings What type of investment occurs when claims to wealth in the form of financial assets are purchased or when debt obligations are repaid? Answer a.financial investment b.real investment c.contractual investment d.voluntary investment Which of the following is the most liquid form of savings? Answer a.cash balances b.time deposits c.insurance reserves d.securities During the early years of the life stage of a typical corporation, the: Answer a.volume of physical assets increases slowly b.firm is unable to establish a strong position with respect to its financial assets c.corporation is a heavy provider of financial assets d.need for borrowed capital is small The basic sources of loanable funds are: Answer a.short-term funds and currency b.current savings and the creation of new funds through the expansion of credit by depository institutions c.contractual savings and commercial bank credit d.bank loans and the creation of new funds through the contraction of credit by depository institutions