What Is the Central Role of Financial Intermediaries in a Market

question 16

Multiple Choice

What is the central role of financial intermediaries in a market economy?

• A)the creation and printing of money
• B)keeping the price level stable
• C)bringing together savers and borrowers
• D)providing safe deposit boxes for people and businesses

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Definitions:

NX

Stands for Net Exports, which is the difference between a country's total value of exports and total value of imports.

Equations

Mathematical statements that assert the equality of two expressions, often used in modeling relationships in various sciences.

Real Return

The return on an investment after adjusting for inflation, reflecting the actual purchasing power of the amount returned.

Net Capital Outflow

The skew in investment patterns between domestic entities investing abroad and foreign entities investing domestically.