List the two ways in which a transfer of funds takes place in an economy. What is the main difference between these two?

Aehtisaam Saifi June 25, 2019

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Question:

List the two ways in which a transfer of funds takes place in an economy. What is the main difference between these two?

Answer:

Funds can flow directly through financial markets or indirectly through intermediation markets where funds flow through financial institutions first.

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