Classify the Following Financial Institutions According to Whether They Are

question 13

Essay

Classify the following financial institutions according to whether they are financial agency institutions,financial intermediaries or investing institutions.
A)Banks
B)Superannuation funds
C)Stockbrokers
D)Insurance companies

• A)Banks
• B)Superannuation funds
• C)Stockbrokers
• D)Insurance companies

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Definitions:

Social Goods

Goods that benefit all members of society and are often provided by the government, such as public parks and national defense.

Collective Benefits

Advantages or positive outcomes that are shared by a group, community, or society from actions or policies, rather than by an individual alone.

Market Failure

Occurs when the allocation of goods and services by a free market is not efficient, often due to reasons like externalities, lack of public goods, or monopolies.

Misallocated Resources

Occurs when resources (like labor, capital, or materials) are not used in the most effective manner, often leading to inefficiencies or lost potential in production or service delivery.