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Financial Intermediaries Are Often the "Middlemen" Between Households and Firms

Question 101

Multiple Choice

Financial intermediaries are often the "middlemen" between households and firms and,as such,


A) they reduce the amount of trade by charging high fees for their services.
B) they are not essential for the workings of an economy.
C) they specialize in assessing the risk of various borrowers.
D) are the fundamental determinant of the supply of capital.
E) are the fundamental determinant of the demand for capital.

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