SECTION A: ANSWER ALL QUESTIONS1. Financial intermediation is?A. Savers being matched with borrowers.B. A person with surplus giving money to a bank, who in turn lend it to a borrower.C. A process that is more effective than direct finance.D. All of the above.2. Which mechanisms do firms use to invest? A.Supplying securities to households.B. By creating money.C. Through increasing money supply in the economy.D. Raising prices of goods and services.3. All of the following are costs associated with direct finance except?A. Searching costsB. Depreciation costsC. Verification costsD. Enforcement costs4. What is the difference between a stock and a flow? A.Only government can possess a stock.B. A stock is measured over a period of time.C. Flows are measured at a point in time.D. None of the above

SECTION A: ANSWER ALL QUESTIONS 1. Financial intermediation is? A. Savers being matched with borrowers. B. A person with surplus giving money to a bank, who in turn lend it to a borrower. C. A process that is more effective than direct finance. D. All of the above.

SECTION A: ANSWER ALL QUESTIONS 1. Financial intermediation is? A. Savers being matched with borrowers. B. A person with surplus giving money to a bank, who in turn lend it to a borrower. C. A process that is more effective than direct finance. D. All of the above.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 1SCQ: Answer these three questions about early-stage corporate finance: Why do very small companies tend...

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