Problems in the Banking and Financial Systems Can Remove the Bridge

question 76

Multiple Choice

Problems in the banking and financial systems can remove the bridge between lenders and borrowers. Which of the following would be a consequence?

• A) Banking fees and other costs of intermediation rise.
• B) Consumers decide to become savers.
• C) There is decreased insider trading.
• D) Each of these answers is correct.

---

Definitions:

Equivalent Units

A measure used in cost accounting to express the amount of work done on incomplete units in terms of complete units.

First-in

Commonly part of the term "First-in, First-out (FIFO)", a method used in inventory management where the oldest stock is sold first.

Labor

Work performed by humans that is used in the production of goods and services.

Equivalent Unit

A metric in cost accounting that quantifies the effort invested in partially finished units by equating it to the output of completely finished units.