Which of the Following Is True of Banks

question 85

Multiple Choice

Which of the following is true of banks?

• A)Banks reduce the opportunity cost of holding idle cash.
• B)Banks act as intermediaries between the government and private investors.
• C)Banks can reduce risk by lending to rich borrowers.
• D)Banks reduce the transaction costs of borrowing and lending money.
• E)Banks can reduce risks by extending more loans.

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Definitions:

Visual Perception

The capability to understand the immediate surroundings through the analysis of information found in visible light.

Sensory Impressions

Perceptions or feelings resulting from the stimulation of the senses, including sight, sound, smell, touch, and taste.

Middle Ear

The portion of the ear internal to the eardrum, and external to the oval window of the cochlea, containing the three auditory ossicles.

Basilar Membrane

A membrane that lies coiled within the cochlea.