Lenders: They are individuals or firms that have surplus funds as their income is more than their expenditure. They loan their surplus funds out. Borrowers: They are individuals or firms that face shortage of funds as their income falls short of their expenditure. They borrow funds from others to meet the shortage. Financial Intermediaries: They are institutions that accept savings from lenders and make them available to borrowers. Direct Finance: It is a system of financing in which lenders make their surplus funds available to borrowers facing shortage of funds, directly. Indirect Finance: It is a system of financing in which lenders make their surplus funds available to borrowers facing shortage of funds, indirectly through financial intermediaries like banks, mutual funds etc.

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Answer 1

Question

Chapter 15, Problem 21P

To determine

Concept introduction:

Lenders: They are individuals or firms that have surplus funds as their income is more than their expenditure. They loan their surplus funds out.

Borrowers: They are individuals or firms that face shortage of funds as their income falls short of their expenditure. They borrow funds from others to meet the shortage.

Financial Intermediaries: They are institutions that accept savings from lenders and make them available to borrowers.

Direct Finance: It is a system of financing in which lenders make their surplus funds available to borrowers facing shortage of funds, directly.

Indirect Finance: It is a system of financing in which lenders make their surplus funds available to borrowers facing shortage of funds, indirectly through financial intermediaries like banks, mutual funds etc.

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Answer 2

Question

Chapter 15, Problem 21P

To determine

Concept introduction:

Lenders: They are individuals or firms that have surplus funds as their income is more than their expenditure. They loan their surplus funds out.

Borrowers: They are individuals or firms that face shortage of funds as their income falls short of their expenditure. They borrow funds from others to meet the shortage.

Financial Intermediaries: They are institutions that accept savings from lenders and make them available to borrowers.

Direct Finance: It is a system of financing in which lenders make their surplus funds available to borrowers facing shortage of funds, directly.

Indirect Finance: It is a system of financing in which lenders make their surplus funds available to borrowers facing shortage of funds, indirectly through financial intermediaries like banks, mutual funds etc.

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Answer 3

Question

Chapter 15, Problem 21P

To determine

Concept introduction:

Lenders: They are individuals or firms that have surplus funds as their income is more than their expenditure. They loan their surplus funds out.

Borrowers: They are individuals or firms that face shortage of funds as their income falls short of their expenditure. They borrow funds from others to meet the shortage.

Financial Intermediaries: They are institutions that accept savings from lenders and make them available to borrowers.

Direct Finance: It is a system of financing in which lenders make their surplus funds available to borrowers facing shortage of funds, directly.

Indirect Finance: It is a system of financing in which lenders make their surplus funds available to borrowers facing shortage of funds, indirectly through financial intermediaries like banks, mutual funds etc.

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Answer 4

Question

Chapter 15, Problem 21P

To determine

Concept introduction:

Lenders: They are individuals or firms that have surplus funds as their income is more than their expenditure. They loan their surplus funds out.

Borrowers: They are individuals or firms that face shortage of funds as their income falls short of their expenditure. They borrow funds from others to meet the shortage.

Financial Intermediaries: They are institutions that accept savings from lenders and make them available to borrowers.

Direct Finance: It is a system of financing in which lenders make their surplus funds available to borrowers facing shortage of funds, directly.

Indirect Finance: It is a system of financing in which lenders make their surplus funds available to borrowers facing shortage of funds, indirectly through financial intermediaries like banks, mutual funds etc.

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Answer 5

Chapter 15, Problem 21P

To determine

Concept introduction:

Lenders: They are individuals or firms that have surplus funds as their income is more than their expenditure. They loan their surplus funds out.

Borrowers: They are individuals or firms that face shortage of funds as their income falls short of their expenditure. They borrow funds from others to meet the shortage.

Financial Intermediaries: They are institutions that accept savings from lenders and make them available to borrowers.

Direct Finance: It is a system of financing in which lenders make their surplus funds available to borrowers facing shortage of funds, directly.

Indirect Finance: It is a system of financing in which lenders make their surplus funds available to borrowers facing shortage of funds, indirectly through financial intermediaries like banks, mutual funds etc.

Answer 6

Chapter 15, Problem 21P

To determine

Concept introduction:

Lenders: They are individuals or firms that have surplus funds as their income is more than their expenditure. They loan their surplus funds out.

Borrowers: They are individuals or firms that face shortage of funds as their income falls short of their expenditure. They borrow funds from others to meet the shortage.

Financial Intermediaries: They are institutions that accept savings from lenders and make them available to borrowers.

Direct Finance: It is a system of financing in which lenders make their surplus funds available to borrowers facing shortage of funds, directly.

Indirect Finance: It is a system of financing in which lenders make their surplus funds available to borrowers facing shortage of funds, indirectly through financial intermediaries like banks, mutual funds etc.

Answer 7

Chapter 15, Problem 21P

To determine

Concept introduction:

Lenders: They are individuals or firms that have surplus funds as their income is more than their expenditure. They loan their surplus funds out.

Borrowers: They are individuals or firms that face shortage of funds as their income falls short of their expenditure. They borrow funds from others to meet the shortage.

Financial Intermediaries: They are institutions that accept savings from lenders and make them available to borrowers.

Direct Finance: It is a system of financing in which lenders make their surplus funds available to borrowers facing shortage of funds, directly.

Indirect Finance: It is a system of financing in which lenders make their surplus funds available to borrowers facing shortage of funds, indirectly through financial intermediaries like banks, mutual funds etc.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 15 - Prob. 15.1LO Ch. 15 - Prob. 15.2LO Ch. 15 - Prob. 15.3LO Ch. 15 - Prob. 15.4LO Ch. 15 - Prob. 15.5LO Ch. 15 - Prob. aFCT Ch. 15 - Prob. bFCT Ch. 15 - Prob. cFCT Ch. 15 - Prob. dFCT Ch. 15 - Prob. 1CTQ

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