Disintermediation Has Which of the Following Effects

question 4

Multiple Choice

Disintermediation has which of the following effects?

• A) It reduces the ties between consumers and businesses.
• B) It lowers costs to the consumer.
• C) It increases costs of manufacturing.
• D) It reduces the cost of advertising.
• E) It has no impact.

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Definitions:

Truth-in-Savings Act

A U.S. federal law designed to promote the disclosure of account terms and fees to consumers, particularly regarding savings accounts and interest-earning bank accounts.

Information

A document, prepared by the prosecutor and presented to the magistrate, which demonstrates that there is enough evidence to charge the defendant and bring him or her to trial.

Accounts

Records or statements of financial transactions, reflecting the financial activities of a person or organization.

Negotiable

A term describing an instrument, such as a check or bill of exchange, that can be transferred from one person to another in a manner that the holder in due course acquires a good title.