Financial Intermediaries

question 18

Multiple Choice

Financial intermediaries

• A) exist because there are substantial information and transaction costs in the economy.
• B) improve the lot of the small saver.
• C) are involved in the process of indirect finance.
• D) do all of the above.
• E) do only A and B of the above.

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Definitions:

Potential Customers

Individuals or organizations that could become purchasers of a product or service but have not yet done so.

Product's Superiority

Product's superiority refers to the characteristics or features of a product that make it better in quality or more desirable than its competitors.

Specific Needs

Particular requirements or desires of individuals or target markets that products or services aim to fulfill.

Public Relations

The strategic communication process that builds mutually beneficial relationships between organizations and their publics.