Individuals May Find It More Advantageous to Purchase Claims from a Financial

question 20

Multiple Choice

Individuals may find it more advantageous to purchase claims from a financial intermediary rather than directly purchasing claims in capital markets because
I.intermediaries are better diversified than most individuals
II.intermediaries can exploit economies of scale in investing that individual investors cannot
III.intermediated investments usually offer higher rates of return than direct capital market claims

• A) I only
• B) I and II only
• C) II and III only
• D) I, II and III

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Definitions:

Color Perception

The process by which the brain interprets and identifies colors in the visual spectrum.

Language

A complex system of communication using symbols, sounds, or gestures, enabling humans to express thoughts, emotions, and ideas.

Thought

The act or process of thinking, where ideas, memories, and considerations are processed cognitively.

Gricean Maxim

Principles proposed by philosopher H.P. Grice to ensure clear, cooperative communication, including quality, quantity, relation, and manner.