Competition Among Financial Intermediaries Tends to Force Borrowing Rates Downward

question 7

True/False

Competition among financial intermediaries tends to force borrowing rates downward.

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Definitions:

Distribution Of Income

The way in which total income is shared out among households, firms, and the government within an economy.

Income Inequality

Refers to the unequal distribution of wealth and income among the members of a society.

Preferences

In economics, the individual tastes or desires that dictate the choices made by consumers based on the satisfaction or utility they get.

Risk

The uncertainty as to the future returns of a particular financial investment or economic investment.