Financial intermediation exists, in part, because:
A) Financial markets work so well
B) Direct finance through stocks and bonds is the dominant form of financing
C) Transaction costs of financial intermediation is always higher than direct finance
D) The transaction costs associated with direct finance can at times be prohibitive
Correct Answer:
Verified
Q11: Financial intermediaries, through their ability to lower
Q12: Financial intermediaries:
A)Increase the cost of financial transactions
Q13: Financial institutions, acting as financial intermediaries, perform
Q14: When the amount of direct and indirect
Q15: The reduction in transaction costs provided by
Q17: If financial intermediaries did not have the
Q18: The reason financial intermediaries play such an
Q19: Examples of economies of scale are:
A)The additional
Q20: One reason financial intermediaries earn profits is
Q21: When a bank takes savings from many
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