Financial Intermediaries

question 86

Multiple Choice

Financial intermediaries:

• A)make indirect transfers from investors to firms.
• B)pass securities through to investors.
• C)include stockbrokers.
• D)facilitate direct transfers from investors to firms.

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Definitions:

Inductive Reasoning

A method of reasoning in which specific observations or measurements are used to make general conclusions.

Normative Economics

A branch of economics that expresses value judgments about economic fairness or what the outcome of the economy or goals of public policy should be.

Economic Reasoning

The process of making decisions based on costs, benefits, and incentives in an effort to maximize benefits while minimizing costs.

Empirical Economics

The branch of economics that focuses on using data and statistical methods to test hypotheses and build economic theories.