Which of the Following Refers to the Displacement of Market

question 63

Multiple Choice

Which of the following refers to the displacement of market middlemen and the creation of a new direct relationship between producers and consumers?

• A) network effect
• B) disintermediation
• C) friction-free commerce
• D) first mover advantage

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Definitions:

Market Rate

The prevailing interest rate available in the marketplace for securities or loans of a similar risk and maturity.

Corporation's Bonds

Debt securities issued by corporations to raise capital, with the promise to pay back the principal amount along with interest at specified dates.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage.

Premium

The excess of the issue price of bonds over their face amount; the excess of the issue price of stock over its par value.