By Reducing Transactions and Information Costs,financial Intermediaries Can

question 107

Multiple Choice

By reducing transactions and information costs,financial intermediaries can

• A) offer savers higher interest rates.
• B) offer borrowers lower interest rates.
• C) earn a profit.
• D) all of the above.

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Definitions:

Secondhand Car

A vehicle that has been previously owned and is available for purchase by a new owner.

Fraudulent Misrepresentation

A false statement of fact made with knowledge of its falsity, intended to induce another to act, resulting in harm.

Punitive Damages

Damages exceeding simple compensation and awarded to punish the defendant for egregious behavior or acts.