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bija089 [108]
3 years ago
12

Why are financial intermediaries willing to engage in information collection activities when investors in financial instruments

may be unwilling to do​ so?
A. Decisions made by financial intermediaries are public​ knowledge, while investments made with financial instruments are not.
B. The​ free-rider problem reduces gains for financial intermediaries more than it does for investors in financial instruments.
C. Banks make private​ loans; their conclusions on who is creditworthy are not made public.
D. Credit information is asymmetric for investors but not for financial intermediaries.
Business
1 answer:
d1i1m1o1n [39]3 years ago
4 0

Answer:

C. Banks make private​ loans; their conclusions on who is creditworthy are not made public.

Explanation:

Investors in financial instruments who engage in information collection face a free-rider problem, which means other investors may be able to benefit from their information without paying for it.

Individual investors, therefore, have inadequate incentives to devote resources to gather information about borrowers who issue securities.

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Douclamp, a steel manufacturing company, makes small investments in three iron ore plants in different cities. When one of the p
Bess [88]

Answer: Options-based planning

Explanation:

The Option based planning is one of the concept that helps in maintain the flexibility of the various types of plans for making the various types of investments.

The main purpose of the option based planning is that it helps in maintaining the slack resources are are specifically used in the for  of extra resource for the purpose of adapting the various types of changes and also the problems.

According to the given question, the Douclamp is one of the type of manufacturing company that basically making small level of investments on the iron ore plant.

Therefore, Douclamp is using the options based planning based on the given scenario.  

8 0
3 years ago
The profit and loss system of capitalism helps entrepreneurs determine the
mrs_skeptik [129]

Answer:

best combination of resources to use to produce a product.

Explanation:

Capitalism also referred to as free-enterprise system or free market can be defined as a type of economy in which prices, products and services are being determined by the market rather than the government. Thus, capitalism is devoid (free) of government regulations, interference or control because the market (enterprises) are the ones who are saddled with the responsibility of determining the market forces.

Simply stated, a pure capitalism is a type of economy that is completely driven by demand and supply of goods and services.

In a society, the role of an entrepreneur is mainly focused on bringing the four (4) factors of production together and take the risks of producing output, so as to generate revenue through sales and make economic profits in the long-run.

Hence, the profit and loss system of capitalism helps entrepreneurs determine best combination of resources to use to produce a product.

4 0
3 years ago
You own a portfolio that has a total value of $210,000 and it is invested in Stock D with a beta of .87 and Stock E with a beta
Crazy boy [7]

Answer:

The dollar amount of the investment in Stock D is (x=$156470.59)

Explanation:

Let assume investment in Stock D = $x

Hence investment in Stock E = (210,000-x)

Portfolio beta=Respective betas * Respective investment weights

1= (x/210,000*0.87)  + (210,000-x) /210,000*1.38[Beta of market=1]

(1*210,000) = 0.87x + 289800 -1.38x

290,000=0.87x+289800-1.38x

Hence x=(289800-210,000)/(1.38-0.87)

x= 79,800 / 0.51

x=156470.5882

x=$156470.59

6 0
3 years ago
Margaret is the new director of research at a well-known pharmaceutical company. She has been asked to design a set of research
Salsk061 [2.6K]

Answer:

double - blind experiments.

Explanation:

Double - blind experiment -  

It is an experimental method , which helps to avoid any impartiality and any error due to biasing .

The experiment give rise to very accurate results , which is very important for any experiment .

Hence , the new director Margaret , need to design a set of double - blind experiments .

7 0
3 years ago
_____________________ are a form of tax and spending rules that can affect aggregate demand in the economy without any additiona
aliina [53]

<u>Automatic stabilizers</u> are a form of tax and spending rules that can affect aggregate demand in the economy without any additional change in legislation.

Automatic stabilizers are a type of fiscal policy designed to offset fluctuations in a country's economic interest thru their regular operation without extra, timely authorization from the government or policymakers.

Automatic stabilizers are mechanisms built into government budgets, without any vote from legislators, that increase spending or lower taxes when the economy slows.

Aggregate demand is the full amount of goods and services in an economy that consumers are inclined to pay for within a positive time period. Mixture demand is calculated as the sum of customer spending, investment spending, authorities spending, and the difference between exports and imports.

Learn more about Aggregate demand here brainly.com/question/1490249

#SPJ4

4 0
2 years ago
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