FIs Perform Their Intermediary Function in Two Ways

question 67

Multiple Choice

FIs perform their intermediary function in two ways:

• A) They specialise as brokers between savers and users.
• B) They serve as asset transformers by purchasing primary securities and issuing secondary securities.
• C) They serve as asset transformers by purchasing secondary securities and issuing primary securities.
• D) They specialise as brokers between savers and users and they serve as asset transformers by purchasing primary securities and issuing secondary securities.

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Definitions:

Majority Rule

A decision-making principle where the preferences of more than half of the members of a group determine the decision made by that group.

Groupthink

A phenomenon in which the desire for harmony or conformity in a group results in an incorrect or deviant decision-making outcome.

Cohesive Groups

Cohesive groups are characterized by strong bonds and a sense of unity among members, often leading to higher levels of group satisfaction and effectiveness.

Group Consensus

A general agreement reached by a group as a whole, where most members support the decision even if it's not their first choice.