Banks and Other fiNancial Institutions

question 149

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.