Disintermediation refers to the
A) failure of financial intermediaries due to moral hazard problems.
B) failure of financial intermediaries due to adverse selection problems.
C) movement of savers and borrowers from banks to financial markets.
D) removal of government regulations of financial intermediaries.
C
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In a perfectly competitive market a firm's rental rate for a machine (v) will be given by: v = P(r + d) where r is the prevailing rate of interest and d is the depreciation rate. In this formula P represents a. the present market price of the machine
b. the initial purchase price of the machine (assuming this differs from its present market price. c. the price of the firm's product. d. the depreciated value of the machine.
Whenever the absolute value of the price elasticity of demand is greater than 1, but less than infinite
A. demand is perfectly elastic. B. demand is unit elastic. C. demand is elastic. D. demand is inelastic.