An Example of How Financial Intermediaries Can Assist in Shifting

question 15

Multiple Choice

An example of how financial intermediaries can assist in shifting an individual's consumption forward in time is:

• A) providing a line of credit.
• B) opening a passbook account.
• C) starting a life insurance policy.
• D) starting an auto insurance policy.

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Definitions:

Crude Oil

A naturally formed, crude oil substance made up of hydrocarbon accumulations and various organic compounds.

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Agricultural machinery used for plowing, tilling, planting, and similar tasks in farming, essential for modern agriculture.

Comparative Advantage

The ability of an entity to produce a particular good or service at a lower opportunity cost than another, supporting the basis for beneficial trade.

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Small semiconductor devices containing electrical circuits that can perform calculations or store data, used in electronic devices.