Financial intermediaries increase the probability of a risky venture being funded by concentrating the risk among a few investors.
Answer the following statement true (T) or false (F)
False
Financial intermediaries are critical because they spread the risk of loss among many individuals. Each investor could put up just a fraction of the needed funds.
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If total variable cost exceeds total revenue at all output levels, a perfectly competitive firm
A) has covered its fixed cost. B) should produce in the short run. C) should shut down in the short run. D) is making short-run profits.
Which measure uses a common set of international prices for all goods and services produced?
a. purchasing power parity income levels b. GNI price deflators c. foreign exchange rate conversions to U.S. dollars d. the exchange rate
Welfare recipients differ markedly from other Americans with respect to general personality characteristics, work ethics, and basic life goals
Indicate whether the statement is true or false
If a machine cost $50,000 initially and is expected to last for 20 years but is worth $60,000 after one year because it is in short supply, an accountant most likely would say that:
A. during the first year the machine had no cost; it provided a revenue to the firm. B. the value of the machine will continue to increase 20 percent per year for the next 20 years. C. the machine's cost for each of its 20 years of existence is $3,000. D. the machine's cost for each of its 20 years of existence is $2,500.