What are financial institutions?
Answer: They are intermediaries that facilitate the flow of individual, business, and government savings into loans and investments. individuals (net savers) want low risk and easy access to their money. businesses and governments (net borrowers) will take the risk with funds and tie them up for a longer term. they transform loans and investments into forms the net savers prefer to hold and they help net
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Sticky Cakes is a bakery. A decrease in the wage rate that Sticky Cakes pays its workers
A) does not shift its MC curve or its ATC curve. B) shifts its MC curve downward but not its ATC curve. C) shifts both its MC curve and its ATC curve downward. D) does not shift its MC curve but shifts its ATC curve downward.
Regardless of the index we use:
A. inflation is measured as a percent increase in the index from one year to the next. B. we get the same measurements for inflation, so each is equally useful. C. the measurement of inflation is the same, so we use the one easiest to calculate. D. we should get an accurate picture of how all consumer goods and services prices changed from year to year.
Inventories are included in GDP because
A. they are value added to final goods. B. they were produced and are sold in their final form. C. they will depreciate. D. they are considered government spending.
What is the link between the safety net provided by the government to the financial industry and the relatively heavy regulation of the same industry by the government?
What will be an ideal response?