By Providing and Communicating Information, the Financial System

question 28

Multiple Choice

By providing and communicating information, the financial system

• A)reduces the difference between the return on three-month U.S. Treasury bills and the return on thirty-year U.S. Treasury bonds.
• B)relieves individual savers from the necessity of searching out individual borrowers.
• C)eliminates the risk in investing in the stock market.
• D)guarantees investors a reasonable return on their money.

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Definitions:

Sociobiology

The branch of biology that focuses on the evolution of social behavior through natural selection.

Ultimate Cause

The deeper reason for an occurrence based on evolutionary significance and history, explaining why a feature or behavior exists in an organism.

Altruism

A type of cooperative behavior in which an individual appears to behave in a way that benefits another rather than itself.

Magnetic Field

A region around a magnetic material or a moving electric charge within which the force of magnetism acts.