Small savers would rather use financial institutions than lend directly to borrowers because:
A) Financial institutions will offer the savers higher interest rates than the savers could obtain directly from borrowers
B) Lenders wouldn't want to deal with small savers
C) Savers prefer to share risk
D) The liquidity is lower with financial institutions but the return is higher
Correct Answer:
Verified
Q76: Which of the following is not true
Q77: Which of the following are depository institutions?
A)
Q90: All of the following are depository institutions,
Q91: Derivative markets exist to allow for:
A)Reduced risk
Q92: Stacy needs $5,000 to help with her
Q93: Non-depository institutions would include all of the
Q94: Financial institutions:
A)Raise the level of transaction costs
Q96: Financial intermediaries pool funds of:
A)Many small savers
Q97: Financial intermediaries handle a larger flow of
Q98: Provide examples of direct and indirect finance
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