Financial intermediaries are institutions that
A. oversee the activities of government institutions such as the Federal Reserve.
B. regulate the activities of stock and bond markets.
C. act as middlemen in the process of directing funds from savers to investors.
D. produce money for the federal government.
Answer: C
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In which of these developing regions has food production per capita steadily fallen over the last quarter century?
(a) Africa. (b) East Asia. (c) South Asia. (d) Latin America.
If the MPC is 0.5 and the tax rate is 10%, a $500 increase in autonomous government purchases will increase equilibrium income by
A) $225. B) $280. C) $910. D) $1,110.
Which of the following statements is true about empty cores?
a. It is individually rational to form coalitions when cores are empty. b. There are no unblockable payoff allocations. c. The only way to prevent blocking is side payments among coalition members. d. Empty cores leave each person with payoff just equal to their production values.
The "invisible hand" using Adam Smith's terminology refers to:
a. "behind-the-scenes" policy making to influence how markets allocate scarce resources. b. market forces working through the price mechanism. c. the money supply that serves to keep the economy working smoothly. d. government control of the market. e. the role of innovation in maintaining a steady rate of growth.