Which Three of the Following Statements Concerning Financial Intermediaries Are

question 6

Multiple Choice

Which three of the following statements concerning financial intermediaries are correct?

• A) They are able to reduce the transaction costs of transferring funds from savers to borrowers in society compared with the primary lenders.
• B) They generally display efficiencies in gathering information as compared with primary investors.
• C) They are often more able to spread risk than primary investors.
• D) They only act as agents between savers and borrowers.

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Definitions:

Expressions

The ways in which thoughts, feelings, or values are conveyed through words, gestures, or art.

Common Fate

A principle suggesting that individuals in a group are bound together by the outcome of events, affecting them all similarly.

Experienced Negotiators

Individuals who have a significant amount of expertise and skill in conducting negotiations effectively.

Constituencies

Groups or bodies of voters in a specified area who elect a representative to a legislative body.