Financial Intermediation Exists, in Part, Because

question 112

Multiple Choice

Financial intermediation exists, in part, because:

• A)Financial markets work so well
• B)Direct finance through stocks and bonds is the dominant form of financing
• C)Transaction costs of financial intermediation is always higher than direct finance
• D)The transaction costs associated with direct finance can at times be prohibitive

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Definitions:

Structural Problems

Refers to fundamental issues within a social, economic, or political structure that cause inequities or inefficiencies, often requiring systemic change to resolve.

Twenty-fourth Amendment

The Twenty-fourth Amendment to the United States Constitution prohibits both Congress and the states from conditioning the right to vote in federal elections on payment of a poll tax or other types of tax.

Voting Rights

Legal rights guaranteed to individuals allowing them to vote in elections and participate in the democratic process.

Poll Taxes

A tax required as a condition of voting; historically used in the United States to disenfranchise African American voters and others.