Financial intermediation exists, in part, because:
A. the transaction costs associated with direct finance can at times be prohibitive.
B. financial markets work so well.
C. transaction costs of financial intermediation is always higher than direct finance.
D. direct finance through stocks and bonds is the dominant form of financing.
Answer: A
You might also like to view...
In the prisoner's dilemma setting for stealing and producing, both participants end up __________, which turns out to be ________________________ stolen. The government _________ make both participants better off by changing the payoff matrix.
A. stealing; better for them than if they had both not; can B. stealing; worse for them than if they had both not; can C. not stealing; better for them than if they had both; cannot D. not stealing; worse for them than if they had both; cannot
In the two-sector growth models, the size of the labor force, the proportion of the labor force devoted to research, and the productivity of researchers determine the
A) investment necessary for steady-state growth. B) steady-state capital stock. C) growth rate of labor-augmenting technological change. D) human capital stock.
If Sam Sneed desires a loan from the Marshall National Bank but the bank only has its legally required reserves on hand, then
a. Sam must go to another bank for his loan b. the Marshall National Bank can borrow directly from a state-chartered bank c. the Marshall National Bank cannot grant the loan because it is state chartered d. the Marshall National Bank can reduce its reserves e. the Marshall National Bank can borrow from its district Federal Reserve Bank
If marginal cost of an additional unit of output is greater than average cost, then average cost will rise
a. True b. False Indicate whether the statement is true or false