The function that banks perform by obtaining funds from households, businesses, and governments and lending these funds to other households, businesses, and governments is known as
A. liquidity intermediation.
B. financial intermediation.
C. fiscal intermediation.
D. lending intermediation.
Answer: B
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The following is an example of risk aversion
a. those applying for a well-paid job tend to be the most qualified b. more reckless drivers opt for cars with fewer safety devices c. the contractor with the lowest bid for a is under-qualified d. Initial Public Offerings (IPOs) seek investors when prospects look good
The basis for trade includes
A) Differing opportunity costs. B) Identical opportunity costs. C) Autarky. D) Government regulatory actions.
If the graph shown represents Taylor's budget constraint, which of the following consumption bundles could Taylor choose?
A. Taylor cannot choose to consume any of these bundles B. One pair of earrings and six hairbands C. Four pairs of earrings and eight hairbands D. Two pairs of earrings and six hairbands
Keynes called money people hold to make routine day-to-day purchases the:
a. transactions demand for holding money. b. precautionary demand for holding money. c. speculative demand for holding money. d. store of value demand for holding money.