Financial Intermediaries (Banks in Particular)have the Ability to Avoid the Free-Rider

question 62

Multiple Choice

Financial intermediaries (banks in particular) have the ability to avoid the free-rider problem as long as they primarily

• A) make private loans.
• B) acquire a diversified portfolio of stocks.
• C) buy junk bonds.
• D) do a balanced combination of A and B of the above.

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Definitions:

Differentiate

The process by which cells or tissues undergo a change toward a more specialized form or function, often in response to environmental or genetic factors.

Maternal Effect Genes

Genes of the mother that are transcribed during oogenesis and subsequently affect the development of the embryo. Compare with zygotic genes.

Drosophila Development

The study of growth and development processes in the fruit fly Drosophila melanogaster, a model organism in genetics and developmental biology.

Developmental Genetics

The study of how genetic mechanisms contribute to the process of organismal development, from fertilization to mature form.