Why Do Households Prefer to Use FIs as Intermediaries to Invest

question 64

Multiple Choice

Why do households prefer to use FIs as intermediaries to invest their surplus funds?

• A)Transaction costs are low to the household since FIs are more efficient in monitoring and gathering investment information.
• B)To receive the benefits of diversification that households may not be able to achieve on their own.
• C)The FI can benefit from combining funds and negotiating lower asset prices and transaction costs
• D)All of the listed options are correct.

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Transfer Opportunity

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A record of a person's past ailments, surgeries, prescriptions, and other medical interventions, used by healthcare professionals for diagnosis and treatment.