In Its Purest Form,________ Essentially Bypasses the Traditional Financial Intermediaries

question 19

Multiple Choice

In its purest form,________ essentially bypasses the traditional financial intermediaries, typically banks,to go directly to investors in the marketplace in order to raise funds.

• A)securitization
• B)the IPO
• C)liquidation
• D)diversification

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Definitions:

Price Elasticity

An indicator of the sensitivity of consumer demand for a product to variations in its price, demonstrating how significantly the quantity of the good demanded changes in response to price fluctuations.

Quantity Supplied

The quantity of a product or service that manufacturers are prepared to offer for sale at a certain price during a defined time frame.

Inelastic

A characteristic of a good or service whose demand does not significantly change with a change in its price.

Perfectly Elastic

A situation in economics where any small change in the price of a good or service will result in an infinite amount of change in the quantity demanded or supplied.