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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Definitions:

Nature

Nature refers to the physical world and its phenomena, including landscapes, plants, animals, and other features and products of the earth, as opposed to human-made creations.

Male Sexuality

Aspects and expressions of sexual behaviors and desires among males.

Gender and Sex

Refers to the distinct concepts where "gender" is the societal and cultural roles, behaviors, and attributes a society considers appropriate for men and women, while "sex" typically refers to biological differences such as chromosomes, hormonal profiles, and internal and external sex organs.

Sexual Gatekeeper

A concept describing a person who exercises control or holds the decisive power over the initiation of sexual activities in a relationship or social setting.