Which of the Following Statements Is True

question 65

Multiple Choice

Which of the following statements is true?

• A) In a world without financial intermediaries the level of fund flows between household savers and the corporate sector is likely to be as high as it is with financial intermediaries.
• B) In a world without financial intermediaries funds would directly flow from surplus units to deficit units.
• C) In a world without financial intermediaries lenders (household) would need to monitor the actions of the firms to which they have lent their funds.
• D) In a world without financial intermediaries funds would directly flow from surplus units to deficit units and lenders (household) would need to monitor the actions of the firms to which they have lent their funds.