Which of the Following Involves Financial Intermediation

question 49

Multiple Choice

Which of the following involves financial intermediation?

• A)a bank makes a loan
• B)a household buys stock issued by a corporation
• C)a foreign government purchases U.S.government bonds
• D)All of the above are correct.

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Definitions:

Nineteenth-Century Immigrants

Refers to the large waves of immigrants who moved to the United States during the 19th century, many of whom were escaping famine, religious persecution, and economic hardship in their home countries.

Agricultural Areas

Regions primarily engaged in the production of food, feed, fiber, and other agricultural products through farming activities.

Pools

Agreements between companies in the same industry to fix prices and divide markets among themselves, often to avoid competition and increase profitability.

Interstate Commerce Act

A United States federal law that was designed to regulate the railroad industry and its monopolistic practices by requiring reasonable and just rates with no discrimination.