One of the Reasons That Financial Intermediaries Exist Is That

question 73

Multiple Choice

One of the reasons that financial intermediaries exist is that

• A)it is illegal for net lenders to lend directly to net borrowers
• B)the vaults at financial intermediaries are safer for your money than your mattress or piggy bank.
• C)there is no system for net lenders to lend directly to net borrowers
• D)financial intermediaries are better equipped to assess risk and to diversify portfolios.

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Definitions:

Unfavorable Relationship

An unfavorable relationship refers to a connection or interaction between people or entities that is not productive or harmonious.

Effective Leaders

Individuals who successfully inspire, influence, and guide others toward achieving specific goals or visions.

Exchange Relationships

Interactions between individuals or groups that are based on reciprocal actions, benefiting all involved parties.

High-Exchange Relationship

A type of relationship characterized by high levels of trust, mutual respect, and reciprocal benefits, often found in organizational contexts.