Why Do Financial Intermediaries Aid in the Efficient Operation of the Economy

question 183

Multiple Choice

Why do financial intermediaries aid in the efficient operation of the economy?

• A) Without them it would be difficult for small savers to lend to large borrowers.
• B) They lend funds to businesses at a zero interest rate.
• C) They print currency.
• D) They regulate the money supply.
• E) They engage in open market operations.

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