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.

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Definitions:

Unilateral Tariff

Tariffs imposed by one country on the imports from all or specific nations, without reciprocal action.

Imported Goods

are items brought into a country from abroad for sale or use, typically involving a transaction between an importer and a foreign producer.

Chinese Yuan

The official currency of the People's Republic of China, used as a medium of exchange and a store of value.

Appreciated

Refers to an increase in value or price of an asset or currency over time.