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marin [14]
3 years ago
12

Economists group commercial​ banks, savings and loan​ associations, credit​ unions, mutual​ funds, mutual savings​ banks, insura

nce​ companies, pension​ funds, and finance companies together under the heading financial intermediaries. What function do financial intermediaries​ perform?(a) act as middlemen, borrowing funds from those who have saved and lending these funds to others. (b) produce nothing of value and are therefore a drain on society’s resources. (c) help promote a more efficient and dynamic economy. (d) do all of the above. (e) do only (a) and (c) of the above.
Business
1 answer:
Anni [7]3 years ago
8 0

Answer:

The answer is: E) Only A and C of the above

Explanation:

Financial intermediaries are institutions that offer a service for individuals or institutions who want to save or borrow money. They help to promote a more efficient economy.

We take some things for granted, but try to imagine if no banks existed.

For instance, you need to borrow $200,000 to buy a new house, but none of your friends or family can lend to you. If banks (or other types of financial institutions) didn´t exist, you would have to search your neighborhood or workplace for someone willing to lend you the money. It is possible for you to find a private lender, but it would be time consuming and very inefficient. Instead the easiest way is to go to a bank and ask for a loan.

The same happens if you have saved some extra money. If banks didn´t exist you would have to hide it in your house or other places, or lend it to someone you knew that needed that money and is willing to pay it back with interest. Banks make saving money much more easy and safer.

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3 years ago
A farmer grows wheat, which she sells to a miller for $90. The miller turns the wheat into flour, which she sells to a baker for
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Answer:

The correct answer is "$155".

Explanation:

Given:

She sells to miller,

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hence,

The GDP in this economy will be:

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2 years ago
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Answer: The equilibrium price of lcd tvs will

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3 years ago
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Automatic increases and decreases in government expenditure and taxation that follow the economic cycle. The majority of government spending in the United States took place at the state and municipal levels up to the Great Depression of the 1930s.

The federal government has accounted for between two-thirds and three-quarters of all government spending since World War II. Federal Expenditures and Purchases as a Percentage of GDP, 1950–2008.

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