A Bank Lending Depositors' Money to a Local Business and a Pension

question 16

Multiple Choice

A bank lending depositors' money to a local business and a pension fund investing contributions in shares of a company are similar financial activities in that

• A)both involve the use of financial markets.
• B)both involve funds being channeled from savers to borrowers through financial intermediaries.
• C)both involve a reduction in the overall level of liquidity in the financial system.
• D)both involve in an increase in the overall level of risk in the financial system.

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Definitions:

Civilization

Advanced stage of human social development and organization characterized by urban development, social stratification, and the use of written or recorded communication.

Samuel Huntington

An American political scientist known for his "Clash of Civilizations" theory, positing that future conflicts would be culturally based.

Religion

A set of organized beliefs, practices, and systems that revolve around the worship of a supernatural power or deity, offering a framework for understanding the universe and humanity's place within it.

Race

A sociopolitical construct that categorizes and differentiates people based on physical characteristics, such as skin color, often leading to systemic inequalities and discrimination.