One Financial Intermediary in Our Financial Structure That Helps to Reduce

question 47

Multiple Choice

One financial intermediary in our financial structure that helps to reduce the moral hazard from arising from the principal-agent problem is the

• A)venture capital firm.
• B)money market mutual fund.
• C)pawn broker.
• D)savings and loan association.

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Definitions:

Quadratic Equation

A mathematical equation where the highest power of an unknown variable is square.

Square Root Property

States that if x^2 = a, where a is a non-negative real number, then x = ±√a, identifying two possible solutions for x.

Factoring

The process of breaking down an expression into its simpler components or factors that, when multiplied together, result in the original expression.

Square Root Property

A principle stating that for any positive number \(x\), if \(y^2 = x\), then \(y\) is a square root of \(x\).