Financial intermediaries are important because
A) they bring lenders and borrowers together in a way that lowers transaction costs.
B) they employ large numbers of people.
C) they provide large funds to the stock market.
D) they increase costs for banks.
A
Economics
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A) sell; extend B) sell; call in C) purchase; extend D) purchase; call in
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If a production process generates pollution, then a competitive market will
A) produce more of the good than is socially optimal. B) produce less of the good than is socially optimal. C) produce the socially optimal quantity of that good. D) produce zero output.
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