One of the Functions of Financial Intermediaries Is to Make

question 3

Multiple Choice

One of the functions of financial intermediaries is to make sure the market clears. This means:

• A) setting the appropriate interest rates.
• B) recording the parties to the transactions.
• C) making sure the total amount to be lent equals the total amount to be borrowed.
• D) minimizing the spread between rates.

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Definitions:

Desensitization

The process of reducing sensitivity or responsiveness to a stimulus, often used as a treatment method to diminish fear or anxiety responses.

Aversive Conditioning

A method of learning that uses negative stimuli to evoke a response in order to condition aversion towards an undesirable behavior.

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without censorship, used to explore the subconscious.

Aversive Conditioning

A behavioral technique that involves teaching individuals to associate an undesirable behavior with an unpleasant stimulus to discourage the behavior.