Which of the Following Statements Is FALSE

question 72

Multiple Choice

Which of the following statements is FALSE?

• A)A financial intermediary specializes in the production of information.
• B)A financial intermediary reduces its risk exposure by pooling its assets.
• C)A financial intermediary benefits society by providing a mechanism for payments.
• D)A financial intermediary may act as a broker to bring together funds deficit and funds surplus units.
• E)A financial intermediary acts as a lender of last resort.

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Definitions:

Laissez Fair Capitalism

An economic system where private parties are free from government intervention in their economic decisions.

Monopolistic Competition

The market structure that exists when there are fewer businesses than in a pure-competition environment and the differences among the goods they sell are small.