The Experience of Disintermediation in the Banking Industry Illustrates That

question 118

Multiple Choice

The experience of disintermediation in the banking industry illustrates that

• A)more regulation of financial markets may avoid such problems in the future.
• B)banks are unable to remain competitive with other financial intermediaries.
• C)consumers no longer desire the services that banks provide.
• D)markets invent alternatives to costly regulations.

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Definitions:

Lien

A claim that one has against the property of another.

Warranty of Title

A legal guarantee provided by a seller to a buyer that the seller has the right to sell the property in question and that it is not encumbered by any undisclosed liens or claims.

Repossess

The act of taking back possession of property, typically by a seller or lender from a buyer due to lack of payment.

Rejection of Goods

The act of refusing to accept delivery of goods because they are defective, do not meet the specifications, or are otherwise not in conformity with the contract terms.