Which statement is incorrect related to financial intermediaries (institutions)?    a. They are firms that specialize in financial intermediation - a process of borrowing funds from SSUs and lending such funds to the DSUs. b. The main objective of financial intermediaries is to convert savings from SSUs into investments. c. They are the biggest investors in equity securities in the PSE d. They offer the highest returns and lowest risks when compared to alternative investments available to SSUs. e. none of the above

Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter9: The Financial Markets And The Economy: The Tail That Wags The Dog
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Which statement is incorrect related to financial intermediaries (institutions)? 

 

a. They are firms that specialize in financial intermediation - a process of borrowing funds from SSUs and lending such funds to the DSUs.

b. The main objective of financial intermediaries is to convert savings from SSUs into investments.

c. They are the biggest investors in equity securities in the PSE

d. They offer the highest returns and lowest risks when compared to alternative investments available to SSUs.

e. none of the above

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