Financial disintermediation occurs when:
a. Businesses no longer borrow directly in the bond market.
b. Businesses no longer issue stock.
c. Individuals no longer trade securities in the secondary market.
d. Individuals withdraw funds from financial intermediaries and invest them elsewhere.
e. All of the above.
.D
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The "law of demand" means that the demand for any scarce good
A) is completely elastic. B) cannot be completely inelastic. C) must be inelastic. D) is only a short-run demand. E) cannot be elastic.
On a graph showing the relationship between x and y, the ceteris paribus condition implies that
A) no other variables are related to x and y. B) the value of x is held constant. C) the value of y is held constant. D) other variables not shown are held constant.
An option allowing the owner to sell an asset at a future date is a
A) put option. B) call option. C) futures contract. D) forward contract.
Activists believe ________
A) the self-correcting mechanism in the economy is very slow B) in the adoption of policies to eliminate excessive unemployment C) doing nothing will leave too many people out of work for too long D) all of the above E) none of the above