The process of financial intermediation:
A. is always used when a borrower needs to obtain funds.
B. creates a net cost to an economy.
C. increases the economy's ability to produce.
D. is used primarily in underdeveloped countries.
Answer: C
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An engineer with a major power company decides to leave his job because he believes he has found a way to deliver Internet service across the electrical grid and he wants to start up his own business. He doesn't have very much cash or collateral
Which method of financing do you believe he will most likely use and why?
Collateral is ________ the lender receives if the borrower does not pay back the loan
A) a liability B) an asset C) a present D) an offering
The index of leading economic indicators usually turns downward: a. prior to economic expansions
b. prior to economic contractions. c. prior to a contraction, but then turns upward before the contraction begins. d. a full 24 months before a recession begins.
A monopolist's price equals its ________ only when output is zero.
A. total cost B. marginal revenue C. marginal cost D. total revenue