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Author Question: If financial intermediaries charge a higher rate of interest to lenders than they pay to borrowers, ... (Read 58 times)

OSWALD

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on: Jun 30, 2018
If financial intermediaries charge a higher rate of interest to lenders than they pay to borrowers, then
 a. investing with borrowed funds involves a higher opportunity cost than investing with savings
  b. investing with saving involves a higher opportunity cost than investing with borrowed funds
  c. a firm is charged less interest to borrow than it can earn on savings
  d. the opportunity cost of investing with borrowed funds equals the opportunity cost of investing with savings
  e. a firm does not consider the market rate of interest when it makes investment decisions

Question 2

The merchandise trade balance
 a. reflects trade in intangibles like insurance and tourism
  b. includes personal gifts to friends abroad
  c. records the flow of financial assets like stocks and bonds
  d. equals the value of imports minus the value of exports
  e. equals the value of tangible products exported minus the value of tangible products imported


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ndhahbi

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

E


OSWALD

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

sultana.d

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Reply 3 on: Yesterday
Excellent

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