Small Savers Prefer to Use Financial Intermediaries Rather Than Make

question 78

Multiple Choice

Small savers prefer to use financial intermediaries rather than make loans to borrowers directly because

• A)savers prefer to share risk.
• B)financial intermediaries offer higher interest rates than could be obtained directly from borrowers.
• C)savers reduce their tax liability by doing so.
• D)borrowers dislike dealing with small savers.

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Definitions:

Meganational Strategy

A business strategy that emphasizes operating and competing in multiple countries as one global market.

Avoids Adaptation

a strategy where a business does not significantly alter its product or services to accommodate different cultural or market requirements in its expansion or operations.

Differentiated Needs

The varying requirements and preferences of customers or markets that businesses seek to satisfy with customized products or services.

Differentiation Strategy

A business approach where a company seeks to distinguish its products or services from competitors' offerings through unique features and benefits.