Which of the following is an example of financial intermediation?
a. John buys shares of stock issued by a fast food company.
b. A foreign government buys bonds issued by the U.S. Treasury.
c. Susan makes a deposit at a bank and the bank uses this money to make an auto loan to Ferguson.
d. None of the above is correct.
c
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Which of the following statements best describes relative inflation?
a. If the country Economia experiences a relatively low inflation rate compared with other economies, then the buying power of its currency is eroding, which will tend to discourage anyone from wanting to acquire or to hold the currency. b. If the country Economia experiences a relatively high inflation rate compared with other economies, then the buying power of its currency is eroding, which will tend to discourage anyone from wanting to acquire or to hold the currency. c. If the country Economia experiences a relatively high inflation rate compared with other economies, then the buying power of its currency is increasing, which will tend to discourage anyone from wanting to acquire or to hold the currency. d. If the country Economia experiences a relatively low inflation rate compared with other economies, then the buying power of its currency is increasing, which will tend to discourage anyone from wanting to acquire or to hold the currency.
In exhibit 10-2, the equilibrium level of GDP is
What will be an ideal response?
Which is not determined by supply and demand?
A. The wage rate B. The interest rate C. Rent D. Profits
Which of the following correctly comments on the following statement? "The only way to increase the revenue from selling a product is to increase the product's price."
A) It is not true. Revenue will increase as the price of the product increases only if demand is elastic. B) This statement is not true. Revenue will increase as the price of the product increases only if demand is inelastic. C) The statement is true. D) This statement is not true. Revenue will decrease as the price of the product increases because quantity demanded will fall.