Financial Intermediaries Are

question 22

Multiple Choice

Financial intermediaries are

• A)the same as financial markets.
• B)individuals who make profits by buying a stock low and selling it high.
• C)a more general name for financial assets such as stocks, bonds, and checking accounts.
• D)financial institutions through which savers can indirectly provide funds to borrowers.

---

Definitions:

Close-Substitute

A good or service that can easily replace another in satisfying consumer needs, with very little change in consumption patterns.

Consumer Preferences

The tastes, preferences, and priorities that individuals have regarding the consumption of goods and services.

Close-Substitute

A product or service that can easily replace another in the consumption preferences of consumers due to its similarity.

Complements

Goods or services that are consumed together because the use of one enhances the value of the other.