--%>

Problem on financial Intermediation

The main reason for the existence of financial intermediaries is as: (1) Direct flows of savings from the individuals to firms would necessitate higher transaction costs. (2) That just wealthy individuals can afford to invest in the stocks and bonds. (3) The habits of individuals who keep their savings in the deposits at financial institutions. (4) All the above are the reasons for existence of financial intermediaries.

Can someone please help me in finding out the accurate answer from the above options.

   Related Questions in Microeconomics

  • Q : Unitary price elasticity of demand The

    The output of RoboMaids consequent to the point where demand has unitary price elasticity is approximately: (i) 2,000 robots weekly. (ii) 4,000 robots monthly. (iii) 6,000 robots monthly. (iv) 10,000 robots monthly. (v) 13,000 robots monthly.

  • Q : Perfectly price inelastic and price

    A vertical demand curve (when one existed) would be ____________ _____________ during its entire range when a horizontal demand curve is ____________ ____________: (w) relatively price inelastic; perfectly price inelastic (x) perfectly price elastic; perfectly price i

  • Q : Competition and Labor Markets Can

    Can someone please help me in finding out the accurate answer from the following question. With similar market demand for its product and similar market labor supply curve, employment will be maximum when the firm is: (1) Pure comp

  • Q : Profit maximizing strategy at breakeven

    Nostalgia Corporation would exactly break-even on its Silver Screen DVDs when, in place of correctly identifying its profit maximizing strategy, this: (w) operated at point i, charging only $10 per DVD and producing 8 million DVD. (x)

  • Q : History of labor-Yellow Dog Contracts

    The agreements not to join unions were once general needs for employment. Now outlawed, such are termed as: (1) Blacklist contracts. (2) Feather-bedding certificates. (3) Employment screens. (4) Exclusionary provisions. (5) Yellow dog contracts.

    Q : Automation and Wage Rates When physical

    When physical capital becomes cheaper, in that case: (w) some workers may be displaced but worker productivity usually rises. (x) automation will make jobs for more workers. (y) workers will supply more labor services. (z) labor supply curves will move in backward ben

  • Q : Normative Economics and Income

    The fundamental economic question probably to generate answers heavily based into debatable value judgments is: (1) what goods will society produce? (2) how will resources be used to yield the goods society chooses to produce? (3) to whom will the goo

  • Q : Determinants of genuine Demand The

    The demand for authentic leather footballs would tend to rise if: (1) Prices for football pads and cleats reduced. (2) Cheap footballs recently molded from the synthetic fibers demonstrated enhanced durability and performance. (3) Latest records were set for injuries

  • Q : Income of consumer-consequence on

    Income of consumer: In case of normal good - Increase in income leads to rise in quantity demanded of a normal good and reduce in income leads to reduction in quanti

  • Q : Labor Union History problem Can someone

    Can someone please help me in finding out the accurate answer from the following question. The labor unions have tended to be most successful in the organizing: (1) Blue collar workers. (2) Clerical workers. (3) Professionals. (4) White collar workers.