Financial Intermediaries Make the Allocation of Resources More Efficient by

question 103

Multiple Choice

Financial intermediaries make the allocation of resources more efficient by

• A) Transferring purchasing power from savers to dissavers.
• B) Lending or investing the savings they hold.
• C) Reducing search and information costs for savers and investors.
• D) Spreading risk out over many individuals.

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Definitions:

Parenting Style

The manner in which parents raise their children, characterized by various dimensions such as warmth, discipline, communication, and expectations.

Authoritarian

A leadership or parenting style characterized by high demands and low responsiveness, where leaders or parents expect strict obedience without much explanatory feedback.

Ironclad

Refers to a type of warship in the 19th century that was covered in iron or steel armor plates.

Young Adulthood

A developmental stage typically ranging from late teens through twenties, characterized by exploration of personal and professional identities.