Which of the following is a role of a financial intermediary?
a. Increasing risk to lenders
b. Combining a large number of loans of small borrowers into a small number of deposits of large savers
c. Decreasing liquidity for savers
d. Reducing risk to depositors
e. Increasing interest rates for both borrowers and lenders
D
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For price discrimination to exist, all of the following are necessary EXCEPT
A) a downward sloping demand curve. B) an identifiable group of buyers with different elasticities of demand. C) an upward sloping marginal cost curve. D) there can be no resale of the product.
According to Fed Chairman Bernanke's analysis of the Depression-era financial system,
a. bank lending was often based on long-term relationships between banks and customers. b. after the banking system collapsed, it recovered quickly due to government intervention. c. bank lending at large was a severely depersonalized endeavor by 1925, which caused risky loan practices. d. Both a and b are correct.
When we consider our savings, interest rates _________ and inflation rates ___________ the value.
A. increase; decrease B. decrease; increase C. increase; increase D. have no real effect; decrease
A survey of income by county revealed that four of the five wealthiest counties were located in the suburbs surrounding Washington, D.C. Why?