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 people.
Correct Answer:
Verified
Q1: An example of a buyer in a
Q3: The market for loanable funds is a
Q4: Moral hazard describes a scenario in which:
A)
Q5: A bank provides:
A) liquidity; that is, access
Q6: Banks act as:
A) an organizer among firms
Q7: Two common economic problems that may arise
Q8: An example of a seller in a
Q9: Information asymmetries are defined to be when:
A)
Q10: A bank acts as _ between buyers
Q39: Banks act as an intermediary between savers
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