If Financial Intermediaries Did Not Have the Ability to Pool

question 64

Multiple Choice

If financial intermediaries did not have the ability to pool the resources of small savers:

• A) borrowers needing large amounts of money would find it more costly to obtain the funds.
• B) the economy would grow faster.
• C) people would likely save more.
• D) the risk associated with lending would decrease.

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Definitions:

DSM

Diagnostic and Statistical Manual of Mental Disorders, a resource used by healthcare professionals to diagnose mental disorders.

Schizophrenia

A chronic mental disorder characterized by distorted thoughts, perceptions, emotions, language, sense of self, and behavior.

Personality Disorder

A type of mental disorder characterized by enduring maladaptive patterns of behavior, cognition, and inner experience.

Somatoform Disorder

A group of psychological disorders in which a patient experiences physical symptoms that are inconsistent with or cannot be fully explained by any underlying medical or neurological condition.