People with Savings Often Deposit Their Funds in a Commercial

question 289

Multiple Choice

People with savings often deposit their funds in a commercial bank, rather than investing them directly with business enterprises, in order to

• A) avoid the problems associated with financial intermediation.
• B) avoid the problems associated with asymmetric information.
• C) earn the highest possible return for taking on the riskiest investments.
• D) All of the above are correct.

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Definitions:

Return on Investment

A metric that assesses the effectiveness or profit generated from an investment by dividing the investment's return by its expense.

Kirkpatrick's Model

A framework for evaluating training programs using four levels: Reaction, Learning, Behavior, and Results.

Return on Expectations

The measure of the success of a project or training based on the stakeholders' initial objectives and outcomes.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, comparing the magnitude and timing of gains from investment relative to its cost.