Funds flow from lenders to borrowers
A) indirectly through financial markets.
B) directly through financial intermediaries.
C) indirectly through financial intermediaries.
D) primarily through government agencies.
C
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The great German hyperinflation during 1922-1923 can be attributed to the:
A) German government printing money to pay bills. B) absence of financial intermediaries in Germany. C) emergence of large number of monopolies in Germany. D) economic policy that restricted the import of goods into Germany.
Adam is the owner/operator of a flower shop. Last year he earned $250,000 in total revenue. His explicit costs were $175,000 paid to his employees and suppliers (assume that this amount represents the total opportunity cost of these resources). During the year he received three offers to work for other flower shops with the highest offer being $75,000 per year. Which of the following is true about Adam's accounting and economic profit?
A. Accounting profit = $175,000; economic profit = $75,000. B. Accounting profit = $75,000; economic profit = negative $100,000. C. Accounting profit = $0; economic profit = negative $75,000. D. Accounting profit = $75,000; economic profit = $0.
Monopolistic competition is characterized by:
A. Rothschild indices that are close to zero. B. concentration ratios that are well above zero. C. employing labor from a perfectly competitive labor market. D. differentiated products.
(Consider This) During the Great Recession of 2007-2009, both real interest rates and investment spending declined. This suggests that:
A. the investment demand curve was positively sloped during this period. B. purchases of capital from abroad increased, and these were not reflected in investment spending figures for that period. C. firms were optimistic about future sales. D. the investment demand curve shifted inward.