What do we call financial institutions through which savers can indirectly provide funds to borrowers?
a. stock markets
b. financial institutions
c. financial markets
d. financial intermediaries
d
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If the U.S. government went from a budget deficit to a budget surplus then
a. the interest rate and the real exchange rate would increase. b. the interest rate and the real exchange rate would decrease. c. the interest rate would increase and the real exchange rate would decrease. d. the interest rate would decrease and the real exchange rate would increase.
According to comparative advantage, a nation should
A) Specialize in the production of the good with the least disadvantage. B) Not import any goods if it does not have a relative disadvantage. C) Import only the goods where the nation has a disadvantage. D) Not produce any goods if the nation is at relative disadvantage.