1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bija089 [108]
4 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]4 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.

You might be interested in
Deadweight loss occurs when
dusya [7]

Answer:

d) the maximum level of total welfare is not achieved.

Explanation:

When the economic efficiency bears a loss, it is termed to be a deadweight loss. This condition occurs in the situation when the free market equilibrium is not able to be achieved. It occurs in the economy when the supply and the demand for the goods and services start to fall from being in the state of equilibrium. The resources allocated experiences a deficiency, thereby causing a deadweight loss.

3 0
3 years ago
Mauve company permits employees to occasionally use the copying machine for personal purposes. the copying machine is located in
serg [7]
That means they arnt paying you a lot or there not making more that there selling
6 0
3 years ago
Santora Company manufactures two productslong dash—toaster ovens and bread machines. The following data are​ available:
denpristay [2]

Answer:

Thus to maximize profit, Santora Company should manufacture Bread machine only.

The unit of Bread machine can be produced in 2,000 machine hours is 8,000 units

Explanation:

The profit for Toaster Ovens and Bread Machines is $10 and $90 respectively; thus  

six toaster ovens per machine hour will generate profit of $60 = ($10 *6)

four bread machines per machine hour  will generate profit of $360 = ($90 *4)

In the same machine hour the profit from Bread machines are significantly higher then Toaster over. Thus to maximize profit, Santora Company should manufacture Bread machine only.

The unit of Bread machine can be produced in 2,000 machine hours is 8,000 units (= 2,000 * 4)

The profit for 8,000 units of Bread machine is $720,000 = (8,000 * $90)

3 0
4 years ago
What type of job can i get with a finance and marketing double major
lora16 [44]
You can get jobs such as social media manager, accountant, advertising manager, marketing analyst, marketing manager, financial planner, budget planner
6 0
3 years ago
Refer to the following table to answer the following questions:
sineoko [7]

Answer:

Following are the answer to this question:

In question first, the answer is "Option d".

In question second, the answer is "Option e".

In question third, the answer is "Option e".

In question fourth, the answer is "Option e ".

In question fifth, the answer is "Option b".

Explanation:

Given values:

Checkable \ deposits =  \$ 400,000,000\\Currency = \$ 340,000,000\\Traveler's \ checks = \$ 4,000,000\\Money \ market \ mutual \ funds = \$ 50,000,000\\Small \ time \ deposits = \$ 6,000,000\\Savings \ deposits = \$ 850,000,000\\

Solution:

  • \text{M1= currency +checkable deposits + travellers check}

    = $400000000+$340000000+$4000000

    = $744000000

\bold{\text{M2 = M1 +money market mutual funds + small time deposit+ saving deposit}}

      =  $744000000 + $50000000+$6000000+$850000000

       = $1,650,000,000

  • Saving account deposits, which means its amount of money increased throughout the M2 portion regular savings account. So M2 will grow  
  • Its increase in the number of employees may not impact the balance sheet with banks, because each bank maintains its entire cash flow
  • For banks, loans are investments if they're lending money as a bank to people. So, it's on income statement asset side
3 0
3 years ago
Other questions:
  • Tootsie Roll Industries is engaged in the manufacture and sale of candy. Major products include Tootsie Roll, Tootsie Roll Pops,
    10·1 answer
  • A $53 petty cash fund has cash of $24 and receipts of $37. The journal entry to replenish the account would include a
    5·1 answer
  • A perfectly competitive firm maximizes its profit by________.
    7·1 answer
  • A division is considering the acquisition of a new asset that will cost $2,520,000 and have a cash flow of $700,000 per year for
    12·1 answer
  • At year-end, the perpetual inventory records of Anderson Co. indicate 60 units of a particular product in inventory, acquired at
    12·1 answer
  • Erna Boogard bakes cakes for a living. Her recipes were so popular in The Netherlands that her company has grown dramatically. S
    10·1 answer
  • Most new jobs in the United States will be in the a manufacturing industries:
    9·2 answers
  • What is journal entry for purchase goods from ram on cash rs 4000​
    6·1 answer
  • Liam has purchased a fee-for-service health insurance plan from Leroux Health Insurance. Plan A includes a $248. 00 monthly prem
    10·1 answer
  • Employees who are part of the chain of command that is responsible for achieving organizational goals.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!