Small Savers Prefer to Use Financial Intermediaries Rather Than Lending

question 30

Multiple Choice

Small savers prefer to use financial intermediaries rather than lending directly to borrowers because:

• A) financial intermediaries offer the savers a wide portfolio of financial instruments.
• B) financial intermediaries offer much higher interest rates than can be obtained directly from borrowers.
• C) borrowers dislike dealing with savers.
• D) savers have a claim with the ultimate borrower via the financial intermediary.

Value external feedback in identifying personal error patterns.

Understand various proofreading techniques and strategies for effective writing.

Acknowledge the effectiveness of proofreading in a distraction-free environment.

Recognize the utility of a personal error patterns chart as a proofreading strategy.

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Definitions:

Opportunity Cost

The value of the best alternative foregone as a result of choosing a different option.

Idle Capacity

Unused or underutilized resources and capabilities within an operation that could be employed to generate output.

Tactical Decisions

Short-term choices made by an organization to address immediate challenges or opportunities, often within the framework of broader strategic plans.

Strategic Decisions

High-level choices that are made by top management to steer an organization towards its long-term goals and objectives.