Intermediation in the financial system is the process of:
A. an arbitrator working with government and private firms to create an efficient financial system.
B. bringing together buyers and sellers in a market.
C. negotiating terms of repayment when agreements between buyers and sellers are in default.
D. government intervention in a financial market.
Answer: B
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Refer to Table 4.1, which shows Flo's and Rita's individual supply schedules for frozen latte-on-a-stick. Assuming Flo and Rita are the only suppliers in the market, what is the market quantity supplied at a price of $2?
A) 0 B) 2 C) 3 D) 5
In the regression model Yi = β0 + β1Xi + β2Di + β3(Xi × Di) + ui, where X is a continuous variable and D is a binary variable, β3
A) indicates the slope of the regression when D=1. B) has a standard error that is not normally distributed even in large samples since D is not a normally distributed variable. C) indicates the difference in the slopes of the two regressions. D) has no meaning since (Xi × Di) = 0 when Di = 0.
In the short run, the downward slope to the Phillips curve is mainly due to:
a. Differences between expected inflation and actual inflation. b. Differences between actual and expected real GDP growth rates. c. Differences between actual and expected sun spots. d. Differences between actual and expected changes in productivity. e. Differences between actual and expected nominal exchange rate changes.
Which is the accurate statement?
A. There is no evidence that there is such a thing as global warming. B. By the end of the century, most of the cities on the east coast and the west coast will be under water. C. The effects of global warming are uncertain. D. Scientific opinion is virtually unanimous about the effects of global warming.