Explain the role of financial intermediation.
What will be an ideal response?
Financial intermediation is the process by which financial institutions accept savings from households and lend the savings to households, businesses, and the government. It is a middleman role that brings savers and borrowers together.
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Refer to Figure 18.3. The opportunity cost of producing pogo sticks in Livonia is
A) 2/3 of a scooter. B) 4/5 of a scooter. C) 6/5 scooters. D) 1.25 scooters.
Total market demand can be calculated by
A) horizontally summing individual demand curves at each and every price level. B) vertically summing individual demand curves at each and every income level. C) adding up the largest quantity demanded by each individual. D) looking at the changes in the products' popularity.
The common currency area in Europe is called the:
A) common market. B) Eurozone. C) euromark. D) European Union.
Broadcast television is an example of:
A. a collective good provided by the government. B. a private good provided by private firms. C. a public good provided by private firms. D. a private good provided by the government.