An institution that collects funds from lenders and distributes these funds to borrowers is called
A) a financial intermediary.
B) the Federal Reserve System.
C) a mercantile exchange.
D) a currency market.
Answer: A) a financial intermediary.
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Assume Jean-Claude purchased real estate for $500,000 using $50,000 of which is his own money and $450,000 of which he borrowed at an 8 percent interest rate. If the value increased by 10 percent in one year and he sold the property, what was Joe’s rate of return on his investment? If the value of the property had declined by 2 percent, what would have been the rate of return on his investment?
What will be an ideal response?
Singapore encourages competition in its health care market by:
A. requiring hospitals to post prices for services and by government publishing hospital performance records. B. avoiding any government involvement in the health care market. C. operating government-run hospitals to compete directly with private hospitals. D. outsourcing all of its health care services to foreign providers.
Briefly explain the command-and-control approach in dealing with an externality such as pollution. Give an example of the U.S. government using the command-and-control approach to deal with the pollution problem
What will be an ideal response?
Explain the difference between an equilibrium level of GDP and a level of GDP which is in disequilibrium.
What will be an ideal response?