Most Individuals Borrow

question 122

Multiple Choice

Most individuals borrow:

• A)Directly without the use of a financial intermediary
• B)Using a financial intermediary because it lowers the cost of borrowing
• C)Using a financial intermediary, but would save money if they financed directly
• D)Without using financial intermediaries, preferring credit cards

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Definitions:

Private Cost

The costs directly incurred by those producing or consuming a good or service, excluding externalities or indirect costs.

Raise Capital

The process by which firms obtain funding to finance their operations, growth, or investments, often through issuing debt or selling equity.

Economic Flow

The movement of resources, goods, services, and money among households, businesses, and the government in an economy.

Large-scale Privatization

The process of transferring ownership of large government enterprises to private entities.