Financial intermediaries are()
A. the same as financial markets.
B. individuals who make profits by buying a stock low and selling it high.
C. a more general name for financial assets such as stocks, bonds, and checking accounts.
D. financial institutions through which savers can indirectly provide funds to borrowers.
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A mutual fund()
A. is a financial market where small firms mutually agree to sell stocks and bonds to raise funds.
B. is funds set aside by local governments to lend to small firms who want to invest in projects that are mutually beneficial to the firm and community.
C. sells stocks and bonds on behalf of small and less known firms who would otherwise have to pay high interest to obtain credit.
D. is an institution that sells shares to the public and uses the proceeds to buy a selection of various types of stocks, bonds, or both stocks and bonds.
The old adage, “Don’t put all your eggs in one basket,” is very similar to a modern bit of advice concerning financial matters()
A. “Buy low-risk bonds.”
B. “Use a medium of exchange.”
C. “Diversify.”
D. “Intermediate.”
Index funds()
A. typically have a higher rate of return and higher costs than managed mutual funds.
B. typically have a higher rate of return and lower costs than managed mutual funds.
C. typically have a lower rate of return and higher costs than managed mutual funds.
D. typically have a lower rate of return and lower costs than managed mutual funds.
In a closed economy, what does (Y - T - C) represent()
A. national saving
B. government tax revenue
C. public saving
D. private saving
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