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
Q12: The function of providing liquidity by financial
Q13: Financial institutions, acting as financial intermediaries, perform
Q14: Financial intermediaries, through their ability to lower
Q15: Economies of scale associated with financial intermediaries
Q16: Financial intermediation is:
A) far less important than
Q18: The reduction in transaction costs provided by
Q19: The reason financial intermediaries play such an
Q20: Automated teller machines provided by financial intermediaries
Q21: The usual situation in banking regarding asymmetric
Q22: Mutual funds offer investors:
A) a greater return
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