Which of the Following Are Financial Intermediaries

question 134

Multiple Choice

Which of the following are financial intermediaries?

• A)both banks and mutual funds
• B)banks but not mutual funds
• C)mutual funds but not banks
• D)neither banks or mutual funds

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Definitions:

Tight Money Policy

A monetary policy strategy used by central banks to reduce the money supply and increase interest rates to control inflation.

Net Exports

The difference between a country's total value of exports and total value of imports. Positive net exports indicate a trade surplus, while negative net exports indicate a trade deficit.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the total amount loaned.

Federal Open Market Committee

The branch of the Federal Reserve Board that determines the direction of monetary policy, specifically by directing open market operations.