Which of the Following Is Incorrect Regarding Financial Intermediaries

question 118

Multiple Choice

Which of the following is incorrect regarding financial intermediaries?

• A)They link savers and borrowers.
• B)They earn profits by loaning money.
• C)They offer lower interest rates on savings than they charge on loans.
• D)They print money.
• E)They accept deposits.

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Definitions:

Profit-Maximizing

Profit-Maximizing refers to a company's goal of achieving the highest possible profit through adjusting production levels, pricing strategies, and other operational decisions.

Loss-Minimizing

A strategy or approach aimed at reducing losses to the lowest possible level under adverse conditions.

Total Revenue

The cumulative income produced from the primary business operations of a company, manifesting from goods or service sales.

Total Cost

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.