If Financial Intermediaries Charge a Higher Rate of Interest to Lenders

question 35

Multiple Choice

If financial intermediaries charge a higher rate of interest to lenders than they pay to borrowers, then

• A)investing with borrowed funds involves a higher opportunity cost than investing with savings
• B)investing with saving involves a higher opportunity cost than investing with borrowed funds
• C)a firm is charged less interest to borrow than it can earn on savings
• D)the opportunity cost of investing with borrowed funds equals the opportunity cost of investing with savings
• E)a firm does not consider the market rate of interest when it makes investment decisions

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Definitions:

Stuart Hall

A cultural theorist and sociologist who was a key figure in the development of British Cultural Studies.

Active or passive

Describes the state or quality of being engaged and involved in actions or activities (active), versus being inactive or receptive without direct engagement (passive).

Mass media audiences

Groups of people who engage with mass media content, such as television, radio, newspapers, and the internet, impacting and being impacted by the media.

Media imperialism

A situation where the media of a particular country overwhelmingly influences or dominates the culture and media landscape of another country, often leading to cultural homogenization.