Financial intermediaries emerged
A) to make loans to governments.
B) to provide a market for municipal bonds.
C) to reduce transactions costs for small savers and borrowers.
D) to reduce transactions costs for traders in stocks and bonds.
C
You might also like to view...
If a good is a necessity, it has ________ substitutes and its demand is ________
A) poor; elastic B) poor; inelastic C) many; elastic D) many; inelastic E) many; precisely unit elastic
Perfect competition ________ an efficient outcome because ________
A) achieves; total surplus is maximized B) achieves; marginal benefit equals marginal cost C) does not achieve; firms do not get to choose their price D) does not achieve; firms produce goods with perfect substitutes E) Both A and B are correct.
During the expansion phase of a business cycle
a. employment and output are both at a peak b. employment and output are both rising c. employment is falling and output is rising d. unemployment is rising and output is falling e. employment is rising and output is falling
The amount by which the burden of a tax exceeds the total revenue collected is called
A. undue burden. B. tax incidence. C. excess burden. D. neutrality.