Finance is the study of how and under what terms
A)savings are allocated between lenders and borrowers.
B)investments are allocated between investors and brokers.
C)institutions with excess money make share purchase decisions.
D)households allocate money between spending and saving.

Question

Quizplus · Accepted Answer

Finance is primarily concerned with how savings are allocated between lenders (those who have excess money to invest) and borrowers (those who need to borrow money to finance their needs). This includes understanding the terms, such as interest rates and repayment schedules, under which this allocation takes place. While investments and share purchases may be a part of finance, they are not the primary area of focus. And while households do allocate money between spending and saving, this is only one aspect of finance.

Finance Is the Study of How and Under What Terms