Because a bank has a very large pool of buyers and savers, it can:
A) act as an intermediary between firms and government.
B) provide liquidity to some individuals that deposit funds.
C) diversify the risk of saving and borrowing for individuals.
D) act in the best interest of society by ensuring there is enough money for everyone.
Correct Answer:
Verified
Q12: In a financial market, people trade:
A) future
Q13: Information asymmetries occur when:
A) one participant in
Q14: The development and heavy use of ATMs
Q15: Which of the following exemplifies a seller
Q16: Banks provide:
A) liquidity.
B) adverse selection.
C) moral hazard.
D)
Q18: Arpita decides to take up mountain biking
Q19: When shopping for a used car on
Q20: In financial markets, sellers are people who:
A)
Q21: In the market for loanable funds, borrowing
Q22: Which type of institution is responsible for
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