Explain the role of financial intermediation
What will be an ideal response?
Financial intermediation is the process by which financial institutions accept savings from households and lend the savings to households, businesses, and the government. It is a middleman role that brings savers and borrowers together.
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Which of the following would be an external cost associated with the manufacture of cigarettes?
a. Price of a pack of cigarettes. b. Price of leaf tobacco. c. Cost to the government of the hospital expenses of indigent smokers. d. Cost to the employer of the higher health insurance premiums due to the hiring of a smoker. e. Cost to the employer of the extra effort lost due to the increased missed days of work as a result of smoking.
Typically, countries with high growth rates of per-capita GDP have
a. lower infant mortality rates b. higher life expectancies c. higher adult literacy d. all of the above e. higher unemployment rates.
Which of the following is part of M1?
I. currency in a bank's vault II. cash in your wallet III. checkable deposits IV. traveler's checks` A) I, II, III, and IV B) I, II, and III C) II and III D) II, III, and IV
Any change in the volume of export or import by a small country will have no effect on its terms of trade.
Answer the following statement true (T) or false (F)