The Economy Is More Efficient Because _____

question 196

Multiple Choice

The economy is more efficient because _____

• A) banks develop expertise in evaluating creditworthiness.
• B) borrowers 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:

Perceive

To become aware or conscious of something through the senses.

Spotlight Question

A focused inquiry that seeks to illuminate crucial aspects of a situation, often used to gain deeper understanding or find solutions.

Ethics

The moral standards of what is “good” and “right” in one’s behaviour.

Family

A group of one or more parents and their children living together as a unit, or broader social units constructed through blood, marriage, or adoption ties.