This topic contains a solution. Click here to go to the answer

Author Question: If financial intermediaries charge a higher rate of interest to lenders than they pay to borrowers, ... (Read 103 times)

OSWALD

  • Hero Member
  • *****
  • Posts: 580
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



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ndhahbi

  • Sr. Member
  • ****
  • Posts: 390
Answer to Question 1

A

Answer to Question 2

E




OSWALD

  • Member
  • Posts: 580
Reply 2 on: Jun 30, 2018
Wow, this really help


isabelt_18

  • Member
  • Posts: 342
Reply 3 on: Yesterday
Excellent

 

Did you know?

More than nineteen million Americans carry the factor V gene that causes blood clots, pulmonary embolism, and heart disease.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

For a complete list of videos, visit our video library