Financial Markets and Intermediaries

question 67

Multiple Choice

Financial markets and intermediaries:

• A) channel savings to real investment.
• B) increase risks for businesses.
• C) generally reduce the liquidity of securities.
• D) prevent the transportation of cash across time.

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Definitions:

Stanley Schachter

An American psychologist best known for his development of the two-factor theory of emotion, which considers both physiological arousal and cognitive interpretation.

General Bodily Arousal

A state of physiological alertness and readiness in the body, often in response to stimuli or stressors, involving various physiological systems.

Interpretation

The act of explaining, reframing, or understanding the meaning or significance of something, often requiring a certain degree of subjective judgment.

Cognitive Interpretations

How individuals perceive, make sense of, and understand their experiences and the world around them through thought processes.