Which of the following is TRUE about interest rates offered by financial Intermediaries? * A.The interest rates issued by financial intermediaries are standard across different financial institutions. B. Interest rates paid by DSUs are lower and SSUs are paid with higher interest rates. C. Interest rates issued by financial intermediaries are based solely on the issuance of central banks. D. Interest rates paid to SSUs are lower compared to the interest they collect to DSUs.

Which of the following is TRUE about interest rates offered by financial Intermediaries? * A.The interest rates issued by financial intermediaries are standard across different financial institutions. B. Interest rates paid by DSUs are lower and SSUs are paid with higher interest rates. C. Interest rates issued by financial intermediaries are based solely on the issuance of central banks. D. Interest rates paid to SSUs are lower compared to the interest they collect to DSUs.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter19: Money Creation

Section: Chapter Questions

Problem 1SQ

See similar textbooks

Similar questions

The following are correct about financial intermediaries, EXCEPT? *A. Financial intermediaries are non-profit institutions which aims to help those in need of funds.B. None of the choices.C. Financial intermediaries collect interest rates from borrowers of funds.D. Financial intermediaries offer varying interest rates, and there is no such thing as a standard interest rate.E. Financial intermediaries conducts background to borrowers before granting loans.
Which of the following is NOT TRUE about Financial Intermediaries? *A. Financial Intermediaries are institutions that serves as a bridge between the SSUs and DSUs.B. Financial Intermediaries makes the financial system more efficient.C. Financial Intermediaries earn profits through various transactions and services they offer.D. Financial Intermediaries offers investment advices.
Which of the following is TRUE about financial regulations? *A. Financial regulations makes the financial system organized, stable and maintain its integrity.B. Financial regulations are not always required in the financial system because financial institutions are already regulated by designated government agencies.C. Financial who are privately trading inside information are highly acceptable in the financial system.D. Financial regulations are laws that are not necessarily need to be enforced.E. None of the choices.
Which of the following explains the relevance of financial institutions? a. Financial institutions spur economic activity by providing credit for business expansion. b. Financial institutions create profits for depositors. c. Financial institutions allow governments to print money. d. Financial institutions provide the main source of funding for start-ups.
When the Bank of Canada sells a Canadian government bond, what are the effects on the volume of loans issued by the banking system and on investment? a. The volume of loans issued by the banking system increases, and investment tends to increase. b. The volume of loans issued by the banking system increases, and investment tends to decrease. c. The volume of loans issued by the banking system decreases, and investment tends to increase. d. The volume of loans issued by the banking system decreases, and investment tends to decrease.
Why are financial intermediaries the most heavily regulated businesses in the economy? Explain why stock market is an important factor in business investment decisions? What is inflation? What explains inflation? If there is a recession, will it be more difficult to find a job when you graduate? Explain. What are the six types of regulations the government employs in an attempt to ensure the soundness of our financial intermediaries? Explain. Explain the difference between debt and equity markets. primary and secondary markets, exchange and over the counter markets and money and capital markets. What is the difference between foreign bond and a Eurobond? Which institutions are subject to Federal Deposit Insurance corporation (FDIC) regulations, and what is the nature of the regulations? What are the reasons for high transaction costs to exist in a barter economy? What separates the assets included in M1 from the assets included in M2? Does it matter what definition of money policy…
Discuss the role of banks as financial institutions that fuel the economic growth of a nation. Because corporations do not actually raise any funds in secondary markets, they are less important to the economy than primary markets.”
List the main function of investment banks in the financial system?
Explain the role that financial intermediaries play in an economy by giving a practical example.
What is the financial system, Name and describe two markets that are part of the financial system in the U.S. economy. Name and describe two financial intermediaries.
Read the following premise carefully and answer the questions specifically and in detail: "Financial institutions such as banks, mortgage companies and finance companies serve as intermediaries between those who have a surplus versus those who have a deficit creating a capital injection market." Explain in detail the function of the financial market and its influence on capital injection. Analyze the responsibility of the financial system in the demand for investment versus the supply of savings.
What are the different Financial Intermediaries and explain how they carry out the objectives of the financial system?