Which of the Following Is NOT a Comparative Advantage of Financial

question 32

Multiple Choice

Which of the following is NOT a comparative advantage of financial intermediaries over surplus spending units in providing funds to deficit spending units?

• A)Economies of scale.
• B)Lower transactions costs.
• C)Better management of credit risk.
• D)Higher searching costs for credit information.

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Definitions:

Clawback Provisions

Agreements that allow companies to retrieve all or part of an employee's compensation under certain conditions, such as misconduct or performance failures.

CEO Pay

The compensation package, including salary, bonuses, and benefits, given to the Chief Executive Officer of a company.

Pay-for-Performance

A compensation strategy where employee pay is directly linked to their performance, productivity, or achievement of certain targets.

Executive Compensation

The payment and benefits package given to top management and executives in a company, which may include salary, bonuses, stock options, and other perks.