Financial intermediaries are able to act as delegated monitors for individual savers because
A) other investors are unable to gain a free ride on their monitoring efforts.
B) borrowers consider this role to be traditional for financial intermediaries and are willing to put up with it.
C) the federal government has granted them waivers from laws protecting privacy.
D) they employ a vast network of private detectives to carry out their monitoring role.
A
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Sally’s Sweaters operates in a perfect competition market. This means Sally faces which of the following?
a. Many competitors and is a price taker b. Many competitors and is a price setter c. Few competitors and is a price taker d. Few competitors and is a price setter
If the price level falls, the real value of a dollar
a. rises, so people will want to buy more. b. rises, so people will want to buy less. c. falls, so people will want to buy more. d. falls, so people will want to buy less.
When you pay for items that are consumed immediately or wear out quickly by financing them with your credit card, your wealth
A) decreases. B) is non-taxable. C) expands. D) is saved for future use.
Which of the following is the best measure of size of government as a share of the economy?
A) total government expenditures as a percentage of GDP B) the supply of money as a percentage of GDP C) public consumption plus private investment as a percentage of GDP D) private consumption as a percentage of Gross Domestic Product