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.

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Definitions:

Judgmental Forecasts

Predictions about future events or trends based on subjective judgments, insights, and opinions, rather than on quantitative data.

Internal Environment

Refers to factors within an organization that impact its operations and culture, including its employees, management, corporate culture, and internal processes.

Focus Group

A qualitative research method involving guided discussions among a small group of people to gather opinions and attitudes about a specific product, service, concept, or policy.

Quality Improvement Circle

A group of employees who voluntarily meet to discuss and plan ways to improve the quality of their products or work processes.