Financial Intermediaries

question 110

Multiple Choice

Financial intermediaries:

• A) increase the cost of financial transactions but offset these higher costs by providing safekeeping of customer funds.
• B) provide handling of payments but usually less efficiently than other firms.
• C) reduce the cost of financial transactions.
• D) provide safety of resources, but only for the large borrowing customers who can afford it.

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Definitions:

Gender-based Differences

Variations in behaviors, preferences, attitudes, or characteristics often observed between males and females, which can be attributed to biological, social, or cultural factors.

Reward Power

The capability of an individual, often a leader or manager, to influence the behavior of others by offering incentives or rewards for certain actions or outcomes.

Coercive

Relating to the use of force or intimidation to obtain compliance.

Selfish Reasons

Motivations or justifications for actions that prioritize one's own benefits or interests above others'.