If Financial Intermediaries Did Not Have the Ability to Pool

question 61

Multiple Choice

If financial intermediaries did not have the ability to pool the resources of small savers:

• A)Borrowers needing large amounts of money would find it more costly to obtain the funds
• B)The economy would grow faster
• C)People would likely save more
• D)The risk associated with lending would decrease

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Definitions:

Bread

A staple food made primarily from flour, water, and yeast or another leavening agent, baked into a variety of forms.

Surplus

An excess amount of a commodity, product, or resource beyond what is needed or utilized.

Substitute Product

An alternative product that serves the same purpose or meets the same need as another.

Apple Juice

A beverage made by pressing and extracting the liquid from apples.