All of these illustrate roles of financial intermediaries, which create incentives for individuals to use financial intermediaries, EXCEPT
A) a saver is able to get a return from his savings being loaned to others, yet is also able to withdraw funds when desired.
B) when savers can compare the terms of savings accounts across financial institutions, they are able to get lower interest rates than would be possible otherwise.
C) a bank makes so many loans it becomes skilled at predicting which loan applicants are trustworthy.
D) by offering standardized savings and loan products, a financial institution has fewer costs than negotiating each saving and loan agreements individually.

Question

Quizplus · Accepted Answer

Option B does not illustrate a role of financial intermediaries creating incentives for individuals to use them. Instead, it simply explains how savers can benefit from comparing different financial institutions. The other options all illustrate the important roles of financial intermediaries in providing attractive returns for savers, expertise in lending decisions, and cost savings through standardized products.

All of These Illustrate Roles of Financial Intermediaries, Which Create