Question

Which of the following is correct regarding financial intermediaries? Multiple Choice They harness households’ savings for...

Which of the following is correct regarding financial intermediaries?

Multiple Choice

  • They harness households’ savings for loans to firms.

  • They pool households’ savings to exploit them to make them destitute.

  • They pool households’ savings to exploit them for corporate extravagance.

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Answer #1

"A"

Only option a is correct, they harness household savings for loans to firms in the market. they do not exploit or make them destitute.

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