Question

The activity of borrowing and lending money between two parties is called​

Answer 1

Answer:

• A bond is a promise to pay. It is a promise to pay something in the future in exchange for receiving something today.
• A bond is a promise to pay. It is a promise to pay something in the future in exchange for receiving something today.Promises—that is, bonds—can be bought and sold. The buyer of a bond is a lender. The seller of a bond is a borrower. The bond buyers pay now in exchange for promises of future repayment—that is, they are lenders. The bond sellers receive money now and in exchange for their promises of future repayment—that is, they are borrowers.
• A bond is a promise to pay. It is a promise to pay something in the future in exchange for receiving something today.Promises—that is, bonds—can be bought and sold. The buyer of a bond is a lender. The seller of a bond is a borrower. The bond buyers pay now in exchange for promises of future repayment—that is, they are lenders. The bond sellers receive money now and in exchange for their promises of future repayment—that is, they are borrowers.Bonds can be traded privately between individuals or in organized markets, called bond markets or credit markets.
• A bond is a promise to pay. It is a promise to pay something in the future in exchange for receiving something today.Promises—that is, bonds—can be bought and sold. The buyer of a bond is a lender. The seller of a bond is a borrower. The bond buyers pay now in exchange for promises of future repayment—that is, they are lenders. The bond sellers receive money now and in exchange for their promises of future repayment—that is, they are borrowers.Bonds can be traded privately between individuals or in organized markets, called bond markets or credit markets.You may not realize it, but you buy and sell bonds all the time! Every time you lend someone a few dollars for lunch or borrow your friend’s car in exchange for filling her tank, in economic terms you are buying and selling bonds. Simply remembering that bond buyers are lenders, bond sellers are borrowers, and that they are trading not pieces of paper but promises, can unlock the door to understanding both the vocabulary and the economics of a wide range of economic behavior, from private loans to interest rates to government budget deficits. It’s much easier to understand borrowing and lending than abstract vocabulary like “the bond market”—even though they are the same thing—because we can by think about our own familiar experiences with borrowing and lending.