When Financial Markets and Institutions Are NOT Efficient in Matching

question 117

Multiple Choice

When financial markets and institutions are NOT efficient in matching savers and borrowers

• A) interest rates fall, which discourages saving even further.
• B) interest rates fall, which discourages investment even further.
• C) resources are lost.
• D) investment rises.

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Definitions:

Agent To Do

Refers to an individual or entity appointed to act on behalf of another (the principal) in dealings with third parties, within the scope of authority granted by the principal.

Mutual Fiduciary Duties

Obligations between parties that require them to act in each other's best interests, often found in relationships like partnerships and between corporate directors and shareholders.

Agents And Principals

A relationship in which one party (the agent) is authorized to act on behalf of another (the principal) in dealings with third parties.

Appointment Of An Agent

The act of designating a person or entity to act on behalf of another, granting them authority to make decisions or perform tasks.