A financial intermediary accepts deposits from savers and makes loans to borrowers

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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A firm that decides to make a price cut assumes that marginal profit is negative.

Answer the following statement true (T) or false (F)

Economics

Expenditure changes may be potentially inequitable, as are tax changes, because

A) their spatial distribution must be determined by the legislature. B) their spatial distribution must be determined by the Fed. C) the government is slow to implement new programs. D) unlike Japan, public works projects are the province of the executive branch.

Economics

The value of a country's currency declines when it implements policies that restrict trade. The primary factor affecting the change in value of the currency in this situation is

A. cultural differences. B. civil unrest. C. demographics. D. isolationism.

Economics

Assume the generic production function Q = f (K,L) displays both decreasing returns to capital (K) and decreasing returns to labor (L). Then

A. this production function may display increasing returns to scale. B. this production function will certainly display constant returns to scale. C. this production function will certainly display decreasing returns to scale. D. this production function will certainly display increasing returns to scale.

Economics