Which of the following is not a major role of financial institutions?
a) It seeks to minimize interest rates that it pays to savers.
b) It seeks to diversify assets to reduce risk.
c) It seeks to minimize transaction costs.
d) It seeks to minimize information costs.
Ans: a) It seeks to minimize interest rates that it pays to savers.
You might also like to view...
Imagine that an economy produces two goods, flashlights and fishing lures. In 2015, the economy produced 100 flashlights and 50 fishing lures, and the prices of flashlights and fishing lures were $5 and $11, respectively
In 2016, the economy produced 120 flashlights and 60 fishing lures, and the prices of flashlights and fishing lures were $7 and $14, respectively. respectively. What happened to nominal GDP from 2015 to 2016? What happened to real GDP?
If price falls, what happens to the quantity demanded for a product?
a. It increases. b. It decreases. c. It does not change. d. Uncertain--economic theory has no answer to this question.