Which one the following four basic economic units consistently represents a savings surplus unit?
A) individuals
B) business firms
C) financial intermediaries
D) governments

Question

Quizplus · Accepted Answer

Individuals consistently represent a savings surplus unit because they tend to save a portion of their income and invest it in various forms such as stocks, bonds, or savings accounts. Business firms may save in certain situations, but may also need to borrow in order to fund their operations. Financial intermediaries typically act as a middleman between saver and borrower, so they may not consistently represent a savings surplus unit. Governments may sometimes run a surplus, but they may also run a deficit and borrow to fund their spending.

Which One the Following Four Basic Economic Units Consistently Represents