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 : Production-Altering the chemical and

Can someone please help me in finding out the accurate answer from the following question. The production which modifies the chemical or physical structures of a good produces utilities of: (1) Substance. (2) Place and time. (3) Form. (4) Possession.

Q : Characterized purely-competitive markets

Purely-competitive markets are NOT characterized through: (i) substantial barriers to entry and exit. (ii) many small potential buyers. (iii) many small potential sellers. (iv) homogeneous products. (v) zero long-run economic profits.

Q : Illustrate progressive tax rates The

The burden of taxation would become additional progressive when federal taxes were reformed in that case: (1) fewer business firms were capable to evade corporate profit taxes. (2) steeper taxes were levied on that harmful goods as alcohol and tobacco. (3) the proport

Q : Consumers and corrupt governmental

I have a problem in economics on Consumers and corrupt governmental processes. Please help me in the following question. John Kenneth Galbraith believes that the big corporations: (1) Must be broken up to the foster competition. (2) Manipulate the con

Q : Margin requirements for deflationary gap

Elucidate the role of margin requirements for correcting deflationary gap.

Q : Estimate federal poverty rate The

The federal poverty rate computed by the Bureau of the Census is the: (w) ratio of poverty income to the average income. (x) number of persons below the poverty line. (y) percentage of persons below the poverty line. (z) official defi

Q : Labor Unions Strikes-Lockouts Can

Can someone please help me in finding out the accurate answer from the following question. Whenever unions and managements have failed to arrive at a collective bargaining agreement and management closes the production facilities to exert pressure on the union negotia

Q : Positive economic loss Can someone help

Can someone help me in finding out the right answer from the given options. Sara left her high strain job at hospital as the neurosurgeon making $250,000 yearly to launch ‘Flowers-to-Go’, a new firm. Sara still feels similar quantity of stress; therefore s

Q : Measures of Poverty Line The poverty

The poverty line is: (1) about $15000/year for a family of two in 2006. (2) an index which varies depending on family characteristics. (3) dependent only on the size and income of a family. (4) about $12500/year for a family of four in 2006. (5) the p

Q : Technology and human knowledge in

The procedure in which the technology and human knowledge are employed to apply energy to convert materials to make the materials more precious is known as: (1) Social overhead. (2) Capitalism. (3) Production. (4) Construction. (5) Profit-seeking.

Discover Q & A

Leading Solution Library

Avail More Than 1414233 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1959474
Asked

3,689

Active Tutors

1414233

Questions
Answered

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

Submit Assignment