Because deposits are insured by the FDIC, most of us do NOT look at the lending behavior of our banks. This creates a(n) ________ problem.

What does the slope of the curved line at point A shown in the above figure equal?

What will be an ideal response?

Direct finance involves the sale to ________ of marketable securities such as stocks and bonds

A) households B) insurance companies C) pension funds D) financial intermediaries