Which of the Following Is an Example of Financial Intermediation

question 124

Multiple Choice

Which of the following is an example of financial intermediation?

• A)John buys shares of stock issued by a fast food company.
• B)A foreign government buys bonds issued by the U.S.Treasury.
• C)Susan makes a deposit at a bank and the bank uses this money to make an auto loan to Ferguson.
• D)None of the above is correct.

Know the legal remedies available for non-performance and breach of contract.

Understand the principles governing the termination of contractual duties by agreement or performance.

Grasp the concept of novation and its implications for contractual obligations.

Recognize the importance of satisfaction in contracts subject to personal judgement.

---

Definitions:

Adolescence

A developmental phase following childhood, typically characterized by physical, psychological, and social changes leading to increased independence.

Focusing Attention

The mental process of concentrating on one element, task, or thought while ignoring other distractions or stimuli.

Middle Childhood

a developmental stage that includes children from approximately 6 to 12 years of age, characterized by significant growth in social, cognitive, and physical areas.

Infancy

The developmental period that extends from birth to about 18 to 24 months.