A bank allows us to diversify risk because it has a:
A. big pool of borrowers and savers, so the risk of repayment is spread among many.
B. small amount of borrowers, but many savers, so it can combine savings to make larger loans.
C. small amount of borrowers and savers, so it can connect the optimal saver to the best-matched borrower.
D. big pool of borrowers, but not many savers, so it can choose the riskiest person to borrow from.
A. big pool of borrowers and savers, so the risk of repayment is spread among many.
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The economists discussed in the Application found that states where unemployment benefits ________ grew ________ than in other states
A) increased; slower B) decreased; slower C) increased; faster D) decreased; faster
Social Security is the second-largest government redistribution program
a. True b. False