Author Question: Which of the following functions are performed by depository institutions? I. They make long-term ... (Read 142 times)

misspop · **on:** Jun 29, 2018

Which of the following functions are performed by depository institutions?

I. They make long-term loans using short-term deposits, thereby creating liquidity.
II. They efficiently gather funds from a large base of depositors.
III. They concentrate risk.
A) I only
B) II only
C) III only
D) I and II

Question 2

An increase in labor productivity ________ the real wage rate and an increase in population ________ the real wage rate.

A) raises; lowers
B) raises; raises
C) lowers; lowers
D) lowers; raises