--%>
Assignment Help - homework help

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 : Value of multiplier When MPC and MPS

    When MPC and MPS are equivalent then what is the value of multiplier? Answer: MPC = MPS = 1/2 Thus K = 1/MPS = 1/1/2 = 2/1 = 2 [that is, Multiplier K = 2].

    		•
  • Q : Price of input influencing goods supply

    Elucidate how does change in price of input influence the supply of a good.

    		•
  • Q : Illustrate ready-to-eat cereal industry

    Brands of ready-to-eat cereal by Kellogg, Post, General Mills and Quaker [for example Frosted Flakes, Raisin Bran and Cheerios] account for more 85 percent of all breakfast cereals sold. Here the ready-to-eat cereal industry is an illustration of: (w)

    		•
  • Q : Moral Hazard-Policies of promotion Can

    Can someone help me in finding out the right answer from the given options. The Moral hazards which produce shirking by employees can be partly remedied when firms adopt the policies of: (1) Efficiency salaries. (2) Hierarchical signaling. (3) Careful screening throug

    		•
  • Q : Resources and Products Flow Model I

    I have a problem in economics on Resources and Products Flow Model. Please help me in the following question. The eventual owners of all resources and products in the society are as follows: (i) households. (ii) Firms. (iii) The tax-paying public. (iv

    		•
  • Q : Problem on Labor History-Yellow Dog

    The yellow dog contracts are now proscribed, however in the early 20th century such agreements among employers: (i) Not to purchase intermediate goods made by unionized labor hindered labor market transformations. (ii) And workers stating that the workers would not jo

    		•
  • Q : Define deficient demand or deflationary

    Define deficient demand or deflationary gap: Deficient demand occur whenever AD is less than AS at the level of full employment equilibrium

    		•
  • Q : NO profit-maximizing firm in long run

    In the long run no profit-maximizing firm would produce yet a level of output at that: (w) marginal revenue is below the price charged consumers. (x) demand is relatively price inelastic. (y) total revenue would exceed total variable costs but not tot

    		•
  • Q : Long run and short run costs I have

    I have difficulty in this question. Provide me correct solution of this to submit my assignment. What is the relationship among long run and short run costs?

    		•
  • Q : Price discrimination in the sale of a

    Price discrimination in the sale of a good show charging various prices that: (w) reflect differences in production costs. (x) do not reflect differences in production costs. (y) are dictated by market conditions. (z) cause a monopoly to be inefficien

    		•