Most External Finance Is Channeled Through Intermediaries Because of

question 26

Multiple Choice

Most external finance is channeled through intermediaries because of

• A) asymmetric information.
• B) agency costs.
• C) monitoring costs.
• D) none of the above.

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Definitions:

Tax Revenue

The income collected by the government from taxes.

National Debt

The cumulative sum of funds borrowed by a nation's government, usually due to spending more than it earns.

Budget Deficits

The situation where a government's expenditures exceed its revenues in a given fiscal period, leading to borrowing or printing of money.

National Debt

The all-encompassing volume of money borrowed by a nation's government through different strategies.