Which of the following statements is not true?
A) Without financial intermediaries, small savers and small borrowers would often face expensive transaction costs.
B) Banks and other financial intermediaries reduce transaction costs.
C) The existence of financial intermediaries can be attributed to market imperfections.
D) Because of financial intermediaries, securities in financial markets are infinitely divisible.
Correct Answer:
Verified
Q10: If a banker lacks enough information to
Q11: "Information Problematic" borrowers are generally
A) municipal governments.
B)
Q12: If the problem of asymmetric information is
Q13: Financial intermediaries are specialists in the production
Q14: Adverse selection is a problem
A) unique to
Q16: Moral hazard is a problem
A) peculiar to
Q17: In actual financial markets, securities are _
Q18: Lenders must be concerned that borrowers may
Q19: Non-traded securities are part of
A) direct but
Q20: _ make(s)it easy for small savers to
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