Financial intermediaries
A. Always allocate funds to the least productive investments.
B. Transfer purchasing power from spenders to savers.
C. Spread the risk of investment failure over many individuals.
D. Increase search and information costs for savers and investors.
Answer: C
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Is it possible for average total cost to be decreasing over a range of output where marginal cost is increasing? Briefly explain
What will be an ideal response?
A firm acting as a price leader would never reduce market price because this would clearly make all of the firms in the market worse off and defeat the purpose of having a firm act as the price leader
Indicate whether the statement is true or false
If an estimated regression explains none of the variation, R2 will be
A) 0. B) between 0 and 1. C) 1. D) unable to determine with the information given.
Which of the following would be included in the gross domestic product (GDP)?
a. The monthly telephone bill paid by Mr. Jones b. The corporate stock purchased by Steven c. The used limousine purchased by Harold d. The bricks purchased by a construction company to build a house e. The $300 George saved because he painted his own garage