Disintermediation Refers to the

question 15

Multiple Choice

Disintermediation refers to the

• A)failure of financial intermediaries due to moral hazard problems.
• B)failure of financial intermediaries due to adverse selection problems.
• C)movement of savers and borrowers from banks to financial markets.
• D)removal of government regulations of financial intermediaries.

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Definitions:

Account Kiting

The illegal practice of exploiting banking systems to create artificial funds by writing checks between several accounts.

Probable Cause

A standard of reasonable belief, based on facts, that is required to arrest a person, conduct a search, or seize property in legal proceedings.

Arrest Warrant

A legal document issued by a judge or magistrate which authorizes the police to arrest and detain an individual suspected of a crime.

Law Enforcement Agent

An individual authorized to enforce laws and maintain public order, including police officers, sheriffs, and federal agents.