Financial Intermediaries Change the Mix of Output by Transferring Financial

question 54

True/False

Financial intermediaries change the mix of output by transferring financial capital from savers to dissavers (borrowers).

---

Definitions:

Forward Buy

A purchasing strategy where a buyer purchases larger quantities of goods in advance to take advantage of lower prices or to hedge against future price increases.

Profitability

The ability of a business to generate more revenue than the expenses incurred, resulting in a profit.

Manufacturing Capacity

The maximum amount of products a factory or production facility can produce within a given time period.

Inventory Costs

Expenses associated with holding and managing goods or materials until they are sold or used in production.