Savers May Prefer to Use Financial Intermediaries Rather Than Lending

question 59

Multiple Choice

Savers may prefer to use financial intermediaries rather than lending directly to borrowers because financial intermediaries:

• A)reduce the cost of gathering information about borrowers.
• B)have a monopoly on lending.
• C)increase the risk of lending.
• D)offer higher rates of return than available elsewhere.

Understand the identification and impact of outliers in a dataset.

Understand the influence of myths and common beliefs on public perception.

Comprehend the characteristics of a useful theory.

Grasp probability principles and their application to real life contexts.

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Definitions:

Vague Sense

An indistinct or unclear perception or understanding of something, often leaving one uncertain.

Secondary Emotion

Emotions that are a blend of primary emotions and include feelings such as guilt, shame, embarrassment, and pride.

Mood

A temporary state of mind or feeling that can influence perception and behavior.

Student Motivation

The level of enthusiasm, drive, and energy that a student brings to the learning process, influencing their engagement and success in academic tasks.