Financial intermediaries make the allocation of resources more efficient by
A) Transferring purchasing power from savers to dissavers.
B) Lending or investing the savings they hold.
C) Reducing search and information costs for savers and investors.
Correct Answer:
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Q2: Higher interest rates
A)Reflect a higher opportunity cost
Q3: Present discounted value refers to the
A)Future value
Q4: As long as interest-earning opportunities exist,present dollars
Q5: If the interest rate is 8 percent,then
Q6: The risk premium is the
A)Interest rate paid
Q8: The present discounted value of $100 to
Q9: The present discounted value of a future
Q10: Market participants are likely to save a
Q11: Risk premiums do all of the following
Q12: Financial intermediaries
A)Increase search and information costs for
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