The financial institutions in our banking system are all in the business of transferring funds from savers to investors. This process is known as
A. money laundering.
B. the circular flow.
C. direct financing.
D. financial intermediation.
Answer: D
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A player's best response is
A) the strategy that maximizes his payoff given what he thinks the other player will do. B) a dominant strategy. C) impossible to find when there isn't a Nash equilibrium. D) a way to avoid the prisoners' dilemma.
If firms were teams, then there is a need for a
A) profit monitor. B) benevolent government. C) boss or supervisor. D) none of these choices.
A government budget deficit will have a:
a. positive effect on public saving causing a rightward shift in the supply of loanable funds. b. positive effect on public saving causing a leftward shift in the supply of loanable funds. c. negative effect on public saving causing a rightward shift in the supply of loanable funds. d. negative effect on public saving causing a leftward shift in the supply of loanable funds.
Suppose we have two pairs of substitute goods. The first are very close substitutes, such as Coke and Pepsi, while the others are less close, such as Coke and iced tea. We would expect the cross elasticity of the closer pair to be
a. positive while the less close pair to be negative b. negative while the less close pair to be positive c. one while the less close pair to be zero d. the smaller of the two e. the larger of the two