Financial intermediaries provide customers with liquidity services. Liquidity services
A) make it easier for customers to conduct transactions.
B) allow customers to have a cup of coffee while waiting in the lobby.
C) are a result of the asymmetric information problem.
D) are another term for asset transformation.
A
You might also like to view...
With perfect asset substitutability and capital mobility the domestic interest rate is equal to the foreign rate
Indicate whether the statement is true or false
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
Taxes cause deadweight losses because they prevent buyers and sellers from realizing some of the gains from trade
a. True b. False Indicate whether the statement is true or false
While the CPI focuses on changes to prices for consumers, the PPI:
A. looks specifically at the price changes that affect the typical producer. B. stands for the producer price index. C. measures the prices of goods and services purchased by firms. D. All of these statements are true.