High-value, long-term projects benefit from:

A. frequent turnover of lenders in the financial sector.
B. leveraging illiquid assets.
C. long-term relationships between lenders and borrowers.
D. high and volatile inflation rates.

Answer: C. long-term relationships between lenders and borrowers.

Economics

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For any given firm in a monopolistically competitive market, the long-run economic profit tends to be __________ and firms operate to the ____________ of the minimum point on the average total cost curve.

a. positive; left b. negative; right c. negative; right d. zero; left

Economics

The total amount of money the banking system can create with an initial deposit (ID) of $10,000 and a legal reserve ratio (LRR) of 25 percent is

a. $30,000 b. $2,500 c. $7,500 d. $10,000 e. $40,000

Economics