Intermediaries Exist Because

question 47

Multiple Choice

Intermediaries exist because

• A) they can perform the distribution function better than the producer or user of the product.
• B) they reach geographic areas with much less expense.
• C) risk levels are low.
• D) customer needs are highly specialized.

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Definitions:

Dodd-Frank Act

A comprehensive financial reform legislation enacted in 2010 in the United States, aimed at reducing risks in the financial system and protecting consumers.

Antifraud Provisions

Regulatory measures designed to protect investors by preventing fraudulent trading practices and securities fraud.

Securities Acts

Collectively refers to federal laws, such as the Securities Act of 1933 and the Securities Exchange Act of 1934, regulating the securities industry in the U.S.

Documentary Letter of Credit

A bank's promise to pay the seller on behalf of the buyer upon receipt of specified documents, typically used in international trade.