Why Do FI's Provide the Public with a Wide Range

question 14

Multiple Choice

Why do FI's provide the public with a wide range of financial services?

• A)Because intermediaries are required by law to do so.
• B)Because intermediaries are, by and large, profit seeking.
• C)Because intermediaries just like to make people happy.
• D)Because intermediaries are better at appraising the risk of default associated with lending to particular borrowers.

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Definitions:

Legal Rights

Entitlements conferred upon individuals by the law, allowing them to engage in certain actions without interference or to be treated in a specific manner by others.

Charter

A document, especially a legal one, that establishes principles, rights, or privileges in a particular entity, organization, or country.

Mobility Rights

Refers to the rights of individuals to move freely within a country or between countries, often enshrined in law or international agreements.

Charter

A document that establishes a municipality or corporation, outlining its rights, privileges, and purposes.