(I)Banks Are Financial Intermediaries That Accept Deposits and Make Loans

question 21

Multiple Choice

(I) Banks are financial intermediaries that accept deposits and make loans.
(II) The term "banks" includes firms such as commercial banks,savings and loan associations,mutual savings banks,credit unions,insurance companies,and pension funds.

• A) (I) is true, (II) false.
• B) (I) is false, (II) true.
• C) Both are true.
• D) Both are false.

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Definitions:

Short-Run Decisions

Decisions made by businesses affecting operations within a period of less than one year, often focusing on immediate operational and financial outcomes.

Opportunity Costs

The potential benefits missed out on when choosing one alternative over another.

Fixed Overhead

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Special Offer

A promotional deal or discount aimed at encouraging consumers to buy a product or service.