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.

View Complete Question

Related Questions in Microeconomics

Q : Profit or loss in purely competitive to

When the wholesale price P = $5 per dozen roses, this purely competitive rose farm maximizes profit through producing ___ dozen roses at a total (loss or profit) of $___. (1) zero; loss; $2000. (2) 2000; loss; $1500.

Q : Relative concept about poverty A

A predictable reluctance through modern welfare recipients to trade all they own for the material possessions of a rich person by a much earlier period would be evidence which poverty is: (w) easily solved by income redistribution pro

Q : Problem on Ceteris Paribus Can someone

Can someone please help me in finding out the accurate answer from the following question. Supposing everything to be constant apart from the variables being studied is termed as the: (1) Ceteris paribus assumption. (2) Ex post facto assumption. (3) Post hoc ergo prop

Q : Why indifference curve is convex Why

Why the indifference curve is convex to origin?

Q : Problem on price elasticity and total

A) Use the table below to draw graphs that show the relationship between price elasticity of demand and total revenue. <

Q : Example to illustrate non-tariff trade

Imports and American cars are close nevertheless not ideal substitutes. When the U.S. government tried to boost American car sales through setting a price ceiling of P1 upon imported cars in that case: (w) the quantity of cars imported will

Q : Marginal cost Give the answer of

Give the answer of following question. Refer to the given data. The marginal cost of producing the sixth unit of output is: A) $24. B) $12. C) $16. D) $8. 432_f</span></p>
</div>

</li>

</td>
</tr><tr>
<td>

<li>
<div class=

Q : Income distribution line in Lorenz curve

When line 0C0' shows the 1975 U.S. income distribution, in that case the 2005 income distribution would most likely be most probable: (1) line 0A0'. (2) line 0B0'. (3) line 0C0'. (4) line 0D0'. (5) line 0E0'.

Q : Critics of contribution standard of

Critics of contribution standard of the income distribution often: (w) cite inequality as evidence of inequity. (x) assert which private individuals must not be capable to accumulate any assets. (y) believe charitable giving should be

Q : Consumer Surplus-Difference in amounts

Kiley pays $1.00 for the cold Pepsi on a hot afternoon, however would be willing to pay $5.00. The $4.00 difference in such amounts is her: (i) Consumer surplus. (ii) Income effect. (iii) Economic gain. (iv) Marginal utility. (v) Pleasure coefficient.

Discover Q & A

Leading Solution Library

Avail More Than 1424778 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1952361
Asked

3,689

Active Tutors

1424778

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment