Suppose you place your savings in a time deposit at the bank, and that bank lends some of those funds to a business that desires a loan. This is an example of
A. direct finance.
B. credit rationing.
C. adverse selection.
D. indirect finance.
Answer: D
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Any consequentialist approach to normative economics that uses standard indifference maps as social indifference maps (over utilities or consumption) will choose efficient outcomes in the first-best case.
Answer the following statement true (T) or false (F)
The provision of the Patient Protection and Affordable Care Act (ACA) which states that insurance companies are required to participate in a high-risk pool that will insure individuals with pre-existing medical conditions who have been unable to buy
health insurance for at least six months is the ________ provision. A) state health insurance marketplaces B) employer mandate C) individual mandate D) regulation of health insurance
Personal income includes: a. income received in the form of transfer payments. b. wages and salaries
c. interest earnings on bonds. d. all of the above.
Federal budget deficits generally grow during recessions because
a. both tax revenues and transfer payments decrease. b. both tax revenues and transfer payments increase. c. tax revenues decrease while transfer payments increase. d. tax revenues increase while transfer payments decrease. e. tax revenues decrease but transfer payments are unchanged.