Which of the Following Are Reasons for the Specialness of Financial

question 58

Multiple Choice

Which of the following are reasons for the specialness of financial intermediaries?

• A) Higher average information costs.
• B) Lower price risk and superior liquidity attributes for financial claims to household savers.
• C) Higher average transaction costs.
• D) All of the listed options are correct.

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Definitions:

Scenario

A description of a possible or future event, used for planning, decision-making, or strategy formulation.

Already Motivated

Describes individuals or groups who are already driven or inclined to act towards a particular goal or activity without the need for external encouragement.

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, which prioritizes human needs from basic (physiological) to advanced (self-actualization).

Workplace

A location or environment where people are employed and perform tasks related to their occupations.