Banks are ________ that link lenders (depositors) to borrowers. Banks exist because they can specialize in evaluating the likelihood of borrower repayment and reducing risk by developing a diversified portfolio rather than lending to a single borrower
a. monopolies
b. non-profit organizations
c. financial intermediaries
d. government agencies
c
You might also like to view...
Marv Pilson has $50 worth of groceries in a shopping cart at his local Shop 'n Save. Assume that the marginal utility per dollar of the liter bottles of soft drink in Marv's cart equals 50
The marginal utility per dollar of the boxes of cereal in Marv's cart equals 20. Marv has only $50 to spend, but has not yet paid for his groceries. How can Marv increase his total utility without spending more than $50? A) Marv should buy fewer boxes of cereal and fewer bottles of soft drink. He can then spend more on other items. B) Marv should substitute his favorite soft drink or the cereal in his cart for generic brands that have lower prices. C) Marv should buy more boxes of cereal and fewer bottles of soft drink. D) Marv should buy fewer boxes of cereal and more bottles of soft drink.
Refer to Figure 3.1. Which of the following is true concerning Alvin's marginal rate of substitution?
A) It is diminishing. B) It is positive but varies along the indifference curve. C) It is constant. D) It is zero.
If the nominal GDP and real GDP of a country in a particular year are $5 trillion and $3 trillion, respectively, the value of the GDP deflator in this year relative to the base year is approximately _____
a. 150 b. 112 c. 167 d. 135
Suppose that the price of a coffee mug is $2. Lee's marginal cost of producing coffee mugs $0.50 for the first mug, Tammy's marginal cost of producing coffee mugs is $1 for the second mug, Stan's marginal cost of producing coffee mugs is $1.50 for the third mug, Joy's marginal cost of producing coffee mugs is $2 for the fourth mug, and Jody's marginal cost of producing coffee mugs is $3 for the fifth mug. In equilibrium, what is the producer surplus from producing coffee mugs?
A. $0 B. $2 C. $3 D. $6