Small Savers Would Rather Use Financial Institutions Than Lend Directly

question 75

Multiple Choice

Small savers would rather use financial institutions than lend directly to borrowers because:

• A) financial institutions will offer the savers higher interest rates than the savers could obtain directly from borrowers.
• B) lenders wouldn't want to deal with small savers.
• C) it allows them to diversify risk.
• D) the liquidity is lower with financial institutions but the return is higher.

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Definitions:

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception and withdrawal from reality.

Disorganized Schizophrenia

A subtype of schizophrenia characterized by disorganized speech, behavior, and thought processes.

Public Masturbation

The act of self-stimulation of one's genitals in a public setting, which is considered illegal and socially inappropriate.

Hospitalized

The state of being admitted to a hospital for treatment, observation, or surgery.