Decentralized market-based financial systems improve the allocation of saving by:
A) ensuring capital gains exceed dividend payments.
B) eliminating the need for commercial banks or other financial intermediaries.
C) matching net capital inflows to net capital outflows.
D) providing information and risk-sharing services.
Correct Answer:
Verified
Q5: Firms that extend credit to borrowers using
Q6: The financial system consists of financial _,
Q7: Two reasons savers keep deposits at banks
Q8: Banks help savers find productive uses for
Q9: Financial intermediaries, such as commercial banks, help
Q11: The amount originally lent by a bondholder
Q12: Privately-owned firms that accept deposits from individuals
Q13: The interest rate promised when a bond
Q14: The principal amount of a bond is
Q15: Savers may prefer to use financial intermediaries
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