Which of the Following Involves Financial Intermediation

question 49

Multiple Choice

Which of the following involves financial intermediation?

• A)a bank makes a loan
• B)a household buys stock issued by a corporation
• C)a foreign government purchases U.S.government bonds
• D)All of the above are correct.

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Definitions:

Coercion

The practice of forcing another party to act in an involuntary manner by use of threats, intimidation, or some other form of pressure or force.

Negotiation

The process by which parties with differing interests and objectives discuss an issue in an attempt to reach a mutually acceptable agreement.

Labor Unions

Organizations that represent the collective interests of workers in negotiations with employers over wages, benefits, and working conditions.

Bargaining Power

The capacity of one party to dominate the terms of negotiation due to their position, resources, or strategic advantage over the others.