The Following Functions Are Provided by Financial Intermediaries for the Smooth

question 61

Multiple Choice

The following functions are provided by financial intermediaries for the smooth functioning of the economy:
I. The payment mechanism II) Borrowing and lending
III. Pooling risk

• A) I only
• B) I and II only
• C) I, II, and III
• D) III only

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Definitions:

Progressive

Referring to political and social movements seeking to promote change, reform, and innovation in governmental practices and policies.

Excise Taxes

Taxes imposed on specific goods or services, often fuel, tobacco, and alcohol, typically aimed at discouraging their consumption or raising revenue.

Economic Regulation

Government-imposed restrictions on the economic activities of private firms, including price controls, market entries, and standards for service quality.

Redistribution of Income

A policy or process whereby wealth is reallocated from certain individuals or groups to others, often through taxation and welfare systems, with the aim of achieving social equity.