Disintermediation refers to the
A) failure of financial intermediaries due to moral hazard problems.
B) failure of financial intermediaries due to adverse selection problems.
C) movement of savers and borrowers from banks to financial markets.
D) removal of government regulations of financial intermediaries.
C
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A perfectly competitive firm is producing 50 units of output and selling at the market price of $23. The firm's average total cost is $20. What is the firm's total cost?
A) $23 B) $150 C) $1,000 D) $1,150 E) $20
If an economy produces 2,000 units of output with a price level of $1 and the money supply (M) is $1,000, velocity is:
A. 2. B. 500. C. 50. D. 5.
In the long run, the primary effect of rapid monetary growth is
a. lower nominal interest rates. b. reduced unemployment. c. inflation. d. an increase in real output.
Answer the following statements true (T) or false (F)
1) The WTO is comprised of 28 European nations. 2) The current, ongoing round of trade negotiations in the World Trade Organization is called the Doha Round. 3) The European Union (EU) is a free trade zone comprising all the nations of eastern and western Europe. 4) France, Germany, and Italy are all members of the eurozone. 5) NAFTA is an international accord that will eliminate all tariffs and quotas worldwide by the year 2025.