Banks and Other Financial Institutions

question 58

Multiple Choice

Banks and other financial institutions

• A)are the primary investors in equipment, factories, and other capital goods.
• B)lack relevance in the modern economy because they focus primarily on financial assets and generally do not engage in real investment activity.
• C)promote economic growth by helping to direct household savings to businesses that want to invest.
• D)often hinder economic activity by creating barriers between household savers and firms wanting to invest in capital goods.

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Definitions:

Nodding

A physical gesture involving the lowering and raising of the head, typically used to signal agreement, acknowledgment, or understanding.

Empathetic

Showing an ability to understand and share the feelings of another, demonstrating compassion and comprehension.

Acknowledge

Recognition or acceptance of the truth or existence of something.

Cherished Beliefs

Cherished beliefs are deeply held convictions or values that an individual or group considers of paramount importance.