ZuoTi.Pro
Question

The following are considered part of the benefits generated by the existence of financial intermediaries in...

The following are considered part of the benefits generated by the existence of financial intermediaries in financial markets, EXCEPT:

Question 2 options:

Facilitates the transfer of funds from savers to borrowers.

Reduces Adverse Selection on lending operations.

Improves efficiency in the allocation of resources.

Eliminates all type of risk for investors.
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

All of the mentioned would be benefits of financial intermediaries except that they eliminate all type of risk for investors. The intermediaries do help and spread out the risks but they can never eliminate all type of risks for investors. So the answer would be "Eliminate all type of risk for investors"

0 0
Add a comment
Know the answer?
Add Answer to:
The following are considered part of the benefits generated by the existence of financial intermediaries in...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Banks and credit unions are considered financial intermediaries because they act as financial institutions through which...

    Banks and credit unions are considered financial intermediaries because they act as financial institutions through which savers can indirectly provide funds to borrowers. Select one: True False The implementation of an investment tax credit would cause the demand for loanable funds to shift to the left and interest rates and the quantity of saving would fall. Select one: True False If a government went from a budget deficit to a surplus, the supply of loanable funds would shift right, interest...

  • Which of the following markets are considered financial markets that facilitate the flow of funds from...

    Which of the following markets are considered financial markets that facilitate the flow of funds from entities with surplus funds, to the entities that have funding needs in excess of their incomes? A. bank (lending) market B. equity capital markets C. debt capital markets D. commercial paper market. E. All of the above except the commercial paper market.. F. All of the above.

  • Which of the following statements is (are) correct? (x) Banks and credit unions are considered financial...

    Which of the following statements is (are) correct? (x) Banks and credit unions are considered financial intermediaries because they act as financial institutions through which savers can indirectly provide funds to borrowers. (y) Mutual funds are one type of financial intermediary and the advantage of mutual funds is that they allow people with small amounts of money to diversify as well as give ordinary people access to the skills of professional money managers. (z) A mutual fund is an institution...

  • 1. Which of the following is true regarding spending and saving? a. Money that is spent...

    1. Which of the following is true regarding spending and saving? a. Money that is spent cannot be saved. b. Spending is good for the economy; saving is bad for the economy. c. Spending money on items that are on sale is the same as saving money. d. Saving money and spending the same dollars has become easier with online banking. 2. If savers were to decrease the level of savings in an economy, what would happen in the loanable...

  • chapter 2: ANSWER THE FOLLOWING QUESTIONS QUESTIONS 1. Why is a share of Microsoft common stock...

    chapter 2: ANSWER THE FOLLOWING QUESTIONS QUESTIONS 1. Why is a share of Microsoft common stock an asset for its owner and a liability for Microsoft? 2. If I can buy a car today for $5,000 and it is worth $10,000 in extra income next year to me because it enables me to get a job as a traveling anvil seller, should I take out a loan from Larry the loan shark at a 90% interest rate if no one...

  • 11) Which of the following typically has the lowest yield? A) 5-year AAA corporate bond B)...

    11) Which of the following typically has the lowest yield? A) 5-year AAA corporate bond B) 2-year U.S. Treasury note C) Fed Funds D) 3-month U.S. Treasury bill 12) Debt instruments are also called: A) adjustable notes B) credit instruments C) perpetual securities D) interest rate swaps 13) Which of the following characteristic is NOT fixed on a coupon bond? A) Current yield B) Coupon rate C) Maturity D) Par amount 14) If you purchased a U.S. Treasury at a...

  • College of Administrative and Financial Sciences Department of Business Administration MGT425 – Spreadsheet Decision Modeling Facility...

    College of Administrative and Financial Sciences Department of Business Administration MGT425 – Spreadsheet Decision Modeling Facility Location Model Supply chain optimization has a big influence in a company’s ability to compete in a global market. In this context, an olive oil producer company intends to analyze its supply chain’s resources efficiency. In a further analysis, the company wants to know the optimal location for its production facility that minimizes the total transportation costs, in order to find possible solutions for...

  • With $2.3 Trillion Injection, Fed’s Plan Far Exceeds Its 2008 Rescue The Federal Reserve said it...

    With $2.3 Trillion Injection, Fed’s Plan Far Exceeds Its 2008 Rescue The Federal Reserve said it would buy some municipal bonds and some riskier debt to help governments and companies. The Federal Reserve said it could pump $2.3 trillion into the economy through new and expanded programs it announced on Thursday, ramping up its efforts to help companies and state and local governments suffering financial damage from the coronavirus. The central bank rolled out its relief package just as the...

  • Read the attached article. Do you feel one style of banking control is more stable than...

    Read the attached article. Do you feel one style of banking control is more stable than the other? Why? Does one banking method minimize market volatility and risk better or is it just packaged differently? Do you feel the US (Western) Banking system can better control the patterns of behavior going forward that have caused economic damage in the past? Should the Fed continue its stimulus policy, reduce it or abandon it entirely (Google some recent articles to research this)?  (Please...

  • Refer to the following financial statements and answer the following questions hints:- 13. cash provided (used)...

    Refer to the following financial statements and answer the following questions hints:- 13. cash provided (used) by operating activities, investing activities, and financing activities. 14. cash-based net income. 15. estimate of uncollectible accounts receivable. 16. calculate and interpret accounts receivable ratio (most recent and prior period). hints:- 2:12 PM Wed Apr 15 39%). A 51.04cdn.com PART II NIKE, Inc. Consolidated Statements of Income in mWors, except per share data) Revenues Cost of sales Gross profit Demand creation expense Operating overhead...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT