Which of the Following Is NOT a Comparative Advantage of Financial

question 39

Multiple Choice

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

• A)Ability to increase credit risk.
• B)Ability to reduce transaction costs.
• C)Ability to achieve economies of scale.
• D)Ability to find confidential information.

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Definitions:

SUTA Taxes

SUTA Taxes refer to State Unemployment Tax Act taxes, which employers pay to provide unemployment benefits to laid-off workers.

FUTA Taxes

Federal Unemployment Tax Act taxes, which are payroll taxes paid by employers to fund unemployment benefits.

Payroll Taxes

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Social Security

A government program that provides financial assistance to retirees, disabled individuals, and survivors of deceased workers.