Which of the Following Is Not a Function of Financial

question 19

Multiple Choice

Which of the following is not a function of financial intermediaries?

• A)Accept funds from the public and invest them in assets.
• B)Harmonise the differences in size,maturity and risk preferences between surplus units and deficit units.
• C)Generate economies of scale as a result of the specialist skills that financial intermediaries acquire in credit assessment and monitoring of the performance of borrowers.
• D)Result in the pooling of the risks associated with a portfolio of loans.

---

Definitions:

Demand Curve

A diagram that displays the connection between the cost of a commodity and the level of demand for it within a set timeframe.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, measured above the supply curve to the equilibrium price.

Price Floor

A government-imposed minimum price charged for a good or service, intended to prevent prices from falling below a certain level to protect producers or market sectors.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus the amount they actually receive in the market.