The Economy Is More Efficient Because _____

question 52

Multiple Choice

The economy is more efficient because _____

• A) savers develop expertise in evaluating creditworthiness.
• B) banks develop expertise in structuring loans.
• C) borrowers develop expertise in enforcing loan contracts.
• D) banks reduce the transaction costs of channeling savings to creditworthy savers.
• E) banks increase the transaction costs of channeling savings to creditworthy borrowers.

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Definitions:

Corporate Social Responsibility

A business model that helps a company be socially accountable to itself, its stakeholders, and the public, by engaging in ethical, environmentally sustainable, and socially beneficial activities.

Lowest Cost

Refers to the minimum expense required to acquire a product or service while maintaining desired quality and efficiency.

Customers

Individuals or entities that purchase goods or services from a business, playing a key role in the company's success.

Conscious Marketing

Ethical marketing practices that consider the welfare of society and the environment in decision-making.