By Acting as a Delegated Monitor, Financial Intermediaries Reduce the Degree

question 20

True/False

By acting as a delegated monitor, financial intermediaries reduce the degree of information imperfection and asymmetry between the ultimate suppliers and users of funds.

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Definitions:

Return On Investment

A measure of the profitability of an investment, calculated as a percentage of the return divided by the cost of the investment.

Return On Investment

A metric to assess the effectiveness or profit generated by an investment in comparison to its expense.

Net Operating Income

Net operating income is the total profit of a company derived from its regular, core business operations, excluding deductions for interest and taxes.

Average Operating Assets

Average operating assets are the mean value of the resources employed in a company's operations over a certain period, used to evaluate the efficiency of asset use in generating revenue.