An Important Function of Financial Intermediation Is

question 38

Multiple Choice

An important function of financial intermediation is:

• A) To convert financial securities with one set of characteristics into securities with another set of characteristics.
• B) To direct the money from lenders to borrowers
• C) To direct the money from borrowers to savers.
• D) For commercial banks to use consumer CD deposits to make deposits to small businesses.

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Definitions:

Lobbying

The practice of private advocacy to influence the government.

Advocacy

The act of publicly supporting or recommending a particular cause or policy.

Direct Democracy

A type of democracy in which all of the people directly make laws and govern themselves.

Citizens Make Laws

A principle in democratic societies where laws are created through the direct or indirect participation of citizens, either by voting in referendums or electing representatives.