When Financial Markets and Institutions Are Not Efficient in Matching

question 4

Multiple Choice

When financial markets and institutions are not efficient in matching savers and borrowers,

• A)interest rates fall, which discourages saving even further.
• B)interest rates fall, which discourages investment even further.
• C)resources are lost.
• D)investment rises.

---

Definitions:

Low Enjoyment

A state of experiencing minimal pleasure or satisfaction from activities that are generally considered enjoyable.

Emotions, Attitudes

Refers to the complex interplay between one's feelings (emotions) and their predispositions to react in certain ways to situations (attitudes).

Behavior Model

A framework or theory that describes how specific behaviors are learned or developed, often through conditioning or social learning.

Positive Feelings

Positive emotions or sentiments, such as happiness, joy, or contentment, that contribute to an individual's overall psychological health.