A ________ Is a Financial Intermediation Device That Allowed the Participant

question 6

Multiple Choice

A ________ is a financial intermediation device that allowed the participant to borrow short and lend long.

• A)sub-prime loan
• B)structured investment vehicle
• C)non-conforming loan
• D)all of the above

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and goods, used by an individual or company to fund its operations and facilitate growth.

Competing Corporations

Companies operating in the same industry, market, or field that vie for the same customer base and resources.

Robinson-Patman Act

Legislation aimed at eliminating discrimination in pricing and promotional allowances among purchasers of the same product.

Cost Justification

The process of demonstrating that a proposed expenditure or investment is worthwhile based on the anticipated benefits exceeding the costs.