Savers may prefer to use financial intermediaries rather than lending directly to borrowers because financial intermediaries:
A. increase the risk of lending.
B. offer higher rates of return than available elsewhere.
C. have a monopoly on lending.
D. reduce the cost of gathering information about borrowers.
Answer: D
You might also like to view...
The cross elasticity of demand
A) means that an increase in the demand for one good leads to a decrease in demand for another good. B) measures how a change in the price of one good impacts the demand for another good. C) measures how a change in supply impacts the demand for the good. D) means that an increase in the price of one good leads to an increase in the price of another good. E) measures how a change in income impacts the demand for the good.
According to your text, there are substitutes for any scarce good,
A) but some demand curves are vertical. B) but the elasticity of demand for most goods is zero. C) but the law of demand only holds for inexpensive goods. D) but it often takes time for consumers to seek out useful substitutes.
Which of the following is a statement of positive economics?
a. I hope unemployment comes down soon. b. President X's way of dealing with unemployment is better than President Y's. c. I think everyone should sacrifice to reduce the deficit. d. If taxes are reduced, unemployment will drop.
The decision to bring suit in an antitrust case is usually made by
A. the injured party. B. the Supreme Court or a lower federal court. C. the Department of Commerce. D. the Department of Justice.