Financial intermediaries change the mix of output by transferring financial capital from savers to dissavers (borrowers).
Answer the following statement true (T) or false (F)
True
A financial intermediary is an institution (e.g., a bank or the stock market) that makes savings available to dissavers (e.g., investors).
You might also like to view...
When a bank receives deposits,
A) it must hold the entire amount as reserves in case of withdrawal. B) the Fed requires it to hold only a small percentage as reserves. C) it and it alone decides how much it will hold as reserves. D) its liabilities increase in amount but its assets do not change. E) its assets increase in amount but its liabilities do not change.
The first step toward reducing negative externalities or maintaining them within acceptable bounds, according to the argument of the textbook, is
A) constructing an exhaustive list of all negative externalities. B) creating a central planning authority for negative externalities. C) cultivating such civic virtues as courtesy and tolerance. D) halting population growth. E) prohibiting activities whose costs are greater than their benefits.