What Is the Central Role of Financial Intermediaries in a Market

question 16

Multiple Choice

What is the central role of financial intermediaries in a market economy?

• A)the creation and printing of money
• B)keeping the price level stable
• C)bringing together savers and borrowers
• D)providing safe deposit boxes for people and businesses

---

Definitions:

Sales Returns

Transactions in which customers return previously purchased merchandise, leading to a refund.

Operating Expenses

Costs associated with the day-to-day operations of a business, such as rent, utilities, and salaries, excluding direct production costs.

Perpetual Inventory System

An inventory accounting system that employs computerized point-of-sale systems and enterprise asset management software to instantly register the purchase or sale of inventory items.

Gross Method

A method of recording purchases at the gross invoice amount before any discounts are applied.