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Small Savers Prefer to Use Financial Intermediaries Rather Than Lending

Question 30

Multiple Choice

Small savers prefer to use financial intermediaries rather than lending directly to borrowers because:


A) financial intermediaries offer the savers a wide portfolio of financial instruments.
B) financial intermediaries offer much higher interest rates than can be obtained directly from borrowers.
C) borrowers dislike dealing with savers.
D) savers have a claim with the ultimate borrower via the financial intermediary.

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