Which of the following is a financial intermediary that serves as a bridge between savers and borrowers in the loanable funds market model?

a) Mutual funds
b) Corporations
c) Government
d) Stock market


Ans: a) Mutual funds

Economics

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The nominal interest rate is

A) the interest rate measured in terms of goods. B) always less than the real interest rate. C) equal to the real interest rate minus the rate of inflation. D) the type of interest rate typically reported in the financial pages of newspapers. E) equal to the expected rate of inflation.

Economics

Establishing different prices for similar products to reflect differences in marginal cost in providing those goods to different groups of buyers is

A) price discrimination. B) cost-plus pricing. C) price differentiation. D) product differentiation.

Economics

Under the Social Security program currently in existence

A. benefits are based on need. B. benefits are provided to everyone who contributed to the system EXCEPT those under private retirement programs that provide an annual income in excess of $13,500. C. benefits are determined by whether or not one contributed to the system. D. benefits are guaranteed to be no lower for future retirees than for current retirees.

Economics

Ceteris paribus, if structural unemployment increases, the economy is

A. Outside the production possibilities curve. B. On the fixed production possibilities curve. C. On the production possibilities curve that shifts inward. D. Inside the production possibilities curve.

Economics