In Ireland, the financial services market enables providers to collect surplus funds as savings and lend them at a margin to which groups?

• A. Individuals only
• B. Individuals, businesses and the Government
• C. Businesses only
• D. Individuals and businesses only

Answer: (B)

The main idea is that financial intermediaries collect surplus funds from savers and lend them out at a margin to different types of borrowers. In Ireland, these borrowers include individuals (for mortgages and personal loans), businesses (for investment and working capital), and the Government (to fund public spending through debt). The margin comes from the difference between the interest paid to savers and the interest earned on loans and securities, which lets providers earn a return while facilitating funding across the economy. Because savers’ funds are channeled to all three groups, the correct answer includes individuals, businesses, and the Government.