What are the functions of depository institutions?

What will be an ideal response?


Depository institutions have four major economic functions: They create liquidity, pool risk, lower the cost of borrowing, and lower the cost of monitoring borrowers.

Economics

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The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that the former

A) has only two countries. B) has only two products. C) has two factors of production. D) has two production possibility frontiers (one for each country). E) has varying wage rates.

Economics

Lectures in microeconomics can be delivered either by an instructor (labor) or a movie (capital) or any combination of both. Each minute of the instructor's time delivers the same amount of information as a minute of the movie

Which graph in the above figure best represents the isoquants for lectures in microeconomics when capital per day is on the vertical axis and labor per day is on the horizontal axis? A) Graph A B) Graph B C) Graph C D) Graph D

Economics

A warranty is most valuable as a signaling device when

A) the buyer has much more information about the product than the seller does. B) the seller has much more information about the product than the buyer does. C) the buyer has much more information about his or her own preferences than the seller does. D) neither the buyer nor the seller has good information about the product. E) neither the buyer nor the seller has good information about consumer preferences.

Economics

When a country or a region of a country specializes in producing the product that has the lower opportunity cost compared to another country or region, it is practicing

A) absolute advantage. B) cost disadvantage. C) regional advantage. D) comparative advantage.

Economics