Financial Intermediaries Are Often the "Middlemen" Between Households and Firms

question 7

Multiple Choice

Financial intermediaries are often the "middlemen" between households and firms and,as such,

• A)they are not essential for the workings of an economy.
• B)are the fundamental determinant of the supply of capital.
• C)are the fundamental determinant of the demand for capital.
• D)they reduce the amount of trade by charging high fees for their services.
• E)they specialize in assessing the risk of various borrowers.

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Definitions:

Standard error of the mean

The standard deviation of the sampling distribution of the mean, indicating the variability of sample means around the population mean.

Average hourly income

The mean amount of money earned by an individual or group per hour of work.

Standard deviation

A measure of the dispersion or variability of a set of numerical data, indicating how much the individual data points deviate from the mean (average) of the data set.

Degrees of freedom

The count of independent variables or measurements that can change in an examination while still adhering to all limitations.