Brokerage firms primarily channel saved funds to borrowers by pooling investment funds and making large securities purchases. This involves collecting funds from various investors and using that capital to invest in securities, which provides opportunities for borrowers in the capital markets. While they also connect buyers and sellers, their role in pooling funds for investment is more directly related to channeling savings to borrowers.
In what way do brokerage firms channel saved funds to borrowers?(1 point)
Responses
Brokerage firms provide short-term loans to savers.
Brokerage firms provide short-term loans to savers.
Brokerage firms pool investment funds and make large securities purchases.
Brokerage firms pool investment funds and make large securities purchases.
Brokerage firms insure borrowers against stock market crashes.
Brokerage firms insure borrowers against stock market crashes.
Brokerage firms connect buyers and sellers of securities.
1 answer