Question

What is the financial​ cycle? ​(Select all the choices that​ apply.) A. In the financial​ cycle, money flows from savers and investors to companies who use that money to fund growth through new products. B. In the financial​ cycle, money flows from companies to savers and investors who use that money to fund growth through new products. The profits and wages generated by the investors and savers then flows back to the corporation. C. Financial institutions connect the money with ideas and assist in returning the profits back to the investors. D. In the financial​ cycle, companies generate profits and wages and interest which then flow back to the savers and investors.

Answer 1

• C. Financial institutions connect the money with ideas and assist in returning the profits back to the investors.
• D. In the financial​ cycle, companies generate profits and wages and interest which then flow back to the savers and investors.

Step-by-step explanation:

The Financial cycle in this instance refers to the flow of funds from savers in the economy to those who need to use it to engage in economic activity that will bring in returns.

It therefore includes financial institutions who are the middlemen in such transactions connecting the money from savers to people with ideas on how to grow them and then assisting in returning profits back to the savers.

It also includes companies who got money from savers generating profits and interest that they will then send back to savers and investors.