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Why Do Financial Intermediaries Aid in the Efficient Operation of the Economy

Question 198

Multiple Choice

Why do financial intermediaries aid in the efficient operation of the economy?


A) Without them it would be difficult for small savers to lend to large borrowers.
B) They lend funds to businesses at a zero interest rate.
C) They print currency.
D) They regulate the money supply.
E) They engage in open market operations.

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