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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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Individuals may find it more advantageous to purchase claims from a financial intermediary rather than directly purchasing claim
SSSSS [86.1K]

Answer:

The correct answer is I and II.

Explanation:

Individuals may find it more advantageous to purchase claims from a financial intermediary rather than directly purchasing claims in capital markets because of several reasons.  

The financial intermediaries such as commercial banks, mutual funds, insurance companies, pension funds, etc. are more diversified than individual investors. They provide a number of options for borrowing and lending.  

These intermediaries work on a larger scale than an individual investor. They are thus able to reap the advantages of economies of scale which an individual investor cannot.

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3 years ago
Manual pipetting creates a musculoskeletal load on the neck, shoulders, and upper limbs. Which types of injuries can this lead t
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3 years ago
Read 2 more answers
、HowTotalRevenueChangesWhenPriceChanges?PleaseusetheElasticityandDemand 订curvetoexplainit.​
Yakvenalex [24]
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6 0
2 years ago
Nếu GDP = $1000, tiêu dùng = $600, thuế = $100, và chi tiêu chính phủ = $200, thì:
Digiron [165]

Answer:

Saving = $200

Investment = $100

Explanation:

Given;

Gross Domestic Production = $1000

Consumption = $600

Taxes = $100

Government spending = $200

Find:

Saving and investment

Computation:

Saving = Gross Domestic Production - Consumption - Government spending

Saving = 1,000 - 600 - 200

Saving = $200

Investment = Saving - Taxes

Investment = 200 - 100

Investment = $100

3 0
2 years ago
If nominal wages fall which of the following will occur in the short run? The SRAS curve will shift to the right The SRAS curve
bixtya [17]

Answer:

The SRAS curve will shift to the right.

Explanation:

A decline in nominal wages will reduce the cost of hiring labor. The overall cost of production will reduce as well. The firms will be able to increase production and investment.  

This increase in production and investment will increase the aggregate supply. As a result, the short-run aggregate supply curve will move to the right. This will cause the equilibrium price to fall and the equilibrium quantity to increase.

7 0
3 years ago
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