The Process of Balancing Savings Surplus and Savings Deficit Units

Multiple Choice

The process of balancing savings surplus and savings deficit units by channeling savings into investment through a financial intermediary does not result in the:

A) individuals receiving safety of principal, liquidity, and a return on their savings
B) business firm anticipating earning a return on its investment in real assets that is lower than the interest cost on the institution loan
C) intermediary being compensated for facilitating the savings and investment process
D) creation of two types of financial assets and two types of financial liabilities