Which of the following is a role of a financial intermediary?
a. Increasing risk to lenders
b. Combining a large number of loans of small borrowers into a small number of deposits of large savers
c. Decreasing liquidity for savers
d. Reducing risk to depositors
e. Increasing interest rates for both borrowers and lenders
D
Economics
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A bank receives new deposits equal to $200,000 and the desired reserve ratio is 10 percent. What is the amount of new loans the bank can make?
What will be an ideal response?
Economics
On average, for the last 100 years or more, real GDP per capita in the United States has increased by
A) 0.5% per year. B) 1% per year. C) 2% per year. D) 4% per year.
Economics