One Financial Intermediary in Our Financial Structure That Helps to Reduce

question 94

Multiple Choice

One financial intermediary in our financial structure that helps to reduce the moral hazard arising from the principal-agent problem is the

• A) venture capital firm.
• B) money market mutual fund.
• C) pawn broker.
• D) savings and loan association.

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Definitions:

System Recording

The process of capturing and documenting operations or events within a system for review or analysis purposes.

Financial Transactions

Deals with the process of exchanging assets such as money between two or more parties.

Itemization

Refers to the process of breaking down a list or group into individual elements for detailed analysis or reporting.

Goods And Purchases

Transactions related to buying and selling physical products or merchandise in various economic sectors.