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miv72 [106K]
3 years ago
13

Suppose Alyssa comes into a large sum of money and decides to lend it out to earn interest on it. Because she lacks the expertis

e to evaluate the credit risks of potential borrowers. she decides to deposit the money in her local bank, a financial intermediary. This is an example of how financial intermediaries can help solve the problem of:
Business
1 answer:
Oksana_A [137]3 years ago
4 0

Answer:

This is an example of how financial intermediaries can help solve the problem of moral harzard.

Explanation:

A moral harzard problems occurs when one party to a transaction changes his or her behavior in a way that is hidden and costly to the other party and, specifically, might undertake behavior. On the other hand, financial intermediaries can require the borrower to provide evidence of how the borrowed funds are being used and can give out the loan in installments. Alyssa can avoid this problem by indirectly lending her money through a financial intermediary.

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3 0
3 years ago
Warranty service, processing of complaints, and costs of litigation are examples of Multiple Choice appraisal costs. internal fa
zhannawk [14.2K]

Examples of internal failure costs include warranty service and complaint handling. As a result, choice b is accurate.

<h3>What do you mean by internal failure cost?</h3>

Internal failure costs are expenses related to flaws discovered prior to the client receiving the good or service. External failure costs are expenses related to flaws discovered after the client has purchased the good or service.

Internal failure costs are quality expenses related to product flaws found before a product leaves the facility.

Hence, warranty services all are examples of the internal failure cost.

Learn more about internal failure costs:

brainly.com/question/14802565

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8 0
1 year ago
A bank can offer which of the following
konstantin123 [22]

Answer:

Checking Account, Savings Account, Safety Deposit Box

Explanation:

Banks are financial institutions that provide a wide variety of financial services to their customers. They accept customer deposits and issue loans. Commercial banks act as intermediaries between the supply side and demand side of credit.

Commercial banks are also known as deposit-taking institutions. Deposits facilities offered by banks include

  • Checking accounts,
  • Savings accounts,
  • Safety Deposit Box
  • Money Markets accounts
  • Certificated of Deposits accounts

8 0
3 years ago
Howard plans on leaving $625 in his savings account for 19 months. The account pays 5.7% simple interest annually. what will be
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Which statement is true of all transactions?
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I’m pretty sure it’s D
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