FIs Perform Their Intermediary Function in Two Ways

question 33

Multiple Choice

FIs perform their intermediary function in two ways:

• A)They specialise as brokers between savers and users and they directly control the quantity of outside money in the economy.
• B)They serve as asset transformers by purchasing primary securities and issuing secondary securities and by purchasing secondary securities and issuing primary securities.
• C)They serve as asset transformers by purchasing secondary securities and issuing primary securities and they directly control the quantity of outside money in the economy.
• D)They specialise as brokers between savers and users and they serve as asset transformers by purchasing primary securities and issuing secondary securities.

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Definitions:

Adults' Lives

The stage in human development characterized by full growth and maturity in both physical and psychological aspects, encompassing the experiences and responsibilities of adult individuals.

Concrete-Operational Stage

A stage in Piaget's theory of cognitive development, typically occurring between ages 7 and 11, where children gain the ability to think logically about concrete events.

Egocentrism

A cognitive trait where an individual is unable to understand that other people’s perspectives and views can be different from their own.

Inch

A unit of length in the imperial and United States customary systems, equal to 1/12 of a foot or 2.54 centimeters.