A Financial Intermediary That Provides Liquid Assets in the Form

question 191

Multiple Choice

A financial intermediary that provides liquid assets in the form of deposits to savers and uses its funds to finance illiquid investment spending needs of borrowers is a(n) :

• A)insurance company.
• B)bank.
• C)pension fund.
• D)hedge fund.

---

Definitions:

Imaginary Audience

A psychological construct explaining how adolescents often feel that their behavior is the main focus of others' attention, leading to heightened self-consciousness.

Egocentrism

The inability to differentiate between self and others, leading to viewing everything solely from one's own perspective.

Preconventional Morality

The first level of Kohlberg's theory of moral development, where moral understanding is based on rewards, punishment, and personal self-interest.

Babinski Reflex

A reflex action in which the big toe remains extended or extends itself when the sole of the foot is stimulated, indicative of abnormalities in the central nervous system.