Financial Intermediaries Pool the Resources of Many Small Savers So

question 91

Multiple Choice

Financial intermediaries pool the resources of many small savers so that they can:

• A)Charge fees to these small savers and earn substantial income
• B)Obtain the funds necessary to make loans to borrowers seeking large amounts
• C)Lower their transaction costs of obtaining funds
• D)Avoid paying any interest to obtain funds to lend

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Definitions:

Long-Term Liabilities

Obligations that are not due or payable for a long time, usually for more than a year.

Net Sales

The total revenue from sales reduced by returns, allowances, and discounts.

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting overhead, payroll, taxation, and interest payments.

Cost of Goods Sold

The total direct costs incurred in producing goods which are sold, including materials and labor.