Financial Intermediaries Are Often the "Middlemen" Between Households and Firms

question 101

Multiple Choice

Financial intermediaries are often the "middlemen" between households and firms and,as such,

• A)they reduce the amount of trade by charging high fees for their services.
• B)they are not essential for the workings of an economy.
• C)they specialize in assessing the risk of various borrowers.
• D)are the fundamental determinant of the supply of capital.
• E)are the fundamental determinant of the demand for capital.

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