What functions of the financial system do the following transactions illustrate or represent? (Note: Some transactions may involve more than one function. Be sure to identify all the financial system functions involved in each transaction.)
a. Dynamic Corporation places some of its current earnings in a bank CD, anticipating a need for funds in about a year in order to build a new warehouse.
b. The Italian government sells new bonds in the open market to cover a large budget deficit.
c. Cal and Jane Lewis hope to put their three young children through college someday. Accordingly, they begin buying U.S. savings bonds.
d. Needing immediate spending power, Hillcrest Corporation sells its holdings of Denton County bonds through a security broker.

Question

What functions of the financial system do the following transactions illustrate or represent? (Note: Some transactions may involve more than one function. Be sure to identify all the financial system functions involved in each transaction.)
a. Dynamic Corporation places some of its current earnings in a bank CD, anticipating a need for funds in about a year in order to build a new warehouse. 
b. The Italian government sells new bonds in the open market to cover a large budget deficit.
c. Cal and Jane Lewis hope to put their three young children through college someday. Accordingly, they begin buying U.S. savings bonds.
d. Needing immediate spending power, Hillcrest Corporation sells its holdings of Denton County bonds through a security broker.

Quizplus · Accepted Answer

The Answer of What functions of the financial system do the following transactions illustrate or represent? (Note: Some transactions may involve more than one function. Be sure to identify all the financial system functions involved in each transaction.)
a. Dynamic Corporation places some of its current earnings in a bank CD, anticipating a need for funds in about a year in order to build a new warehouse. 
b. The Italian government sells new bonds in the open market to cover a large budget deficit.
c. Cal and Jane Lewis hope to put their three young children through college someday. Accordingly, they begin buying U.S. savings bonds.
d. Needing immediate spending power, Hillcrest Corporation sells its holdings of Denton County bonds through a security broker.

What Functions of the Financial System Do the Following Transactions