Financial Intermediaries Make the Allocation of Resources More Efficient by

question 103

Multiple Choice

Financial intermediaries make the allocation of resources more efficient by

• A) Transferring purchasing power from savers to dissavers.
• B) Lending or investing the savings they hold.
• C) Reducing search and information costs for savers and investors.
• D) Spreading risk out over many individuals.

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Definitions:

International Trade

The exchange of goods and services across national borders, influenced by comparative advantages and trade policies.

Income Share

The proportion of total national or group income earned by individuals or entities, often analyzed to assess economic inequality.

Richest Americans

The term "richest Americans" refers to individuals within the United States who have the highest net worth, often derived from businesses, investments, inheritance, or other sources of income.

In-Kind Benefit

A benefit given in the form of goods or services.