Which of the Following Are Benefits of Financial Intermediaries

question 100

Multiple Choice

Which of the following are benefits of financial intermediaries?

• A) Increase market liquidity
• B) Provide a direct market for investors
• C) Act as agents of the government
• D) Increase market liquidity and provide a direct market for investors

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Definitions:

Nonrival Consumption

A situation where one individual's consumption of a good does not reduce the amount available for consumption by others.

Private Goods

Goods that are excludable and rivalrous in consumption, meaning they can only be used by one person at a time.

Rival Consumption

A situation where the consumption of a good or service by one person reduces its availability for consumption by another person.

Excludable

A characteristic of a good or service that means it can be limited to only paying customers or those who meet certain criteria.