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Test bank for money the financial system and the economy 6th edition hubbard

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It is easier and less risky to save money in a bank account and allow the bank to serve as a go-between with potential borrowers.. D Interest received from a bank is deductible on the fe

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liability to both you and Intel

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It is easier and less risky to save money in a bank account and allow the bank to serve as a

go-between with potential borrowers

D)

Interest received from a bank is deductible on the federal income tax, whereas interest

received from an individual borrower is not

Formerly in Eastern Europe and the Soviet Union, funds were transferred between savers

and borrowers primarily through the

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reduces the difference between the return on three-month U.S Treasury bills and the return

on thirty-year U.S Treasury bonds

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Which of the following was an important consequence of the regulatory reforms that

followed the deposit insurance crisis of the 1980s and early 1990s?

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24)

Which of the following rankings of sources of funds for businesses from the least important

to the most important is correct?

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Economic analysis is useful in

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To be useful, an economic theory should

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Financial intermediaries play a more important role in channeling funds from small savers to small borrowers than do financial markets Eastern European countries would have been welladvised to concentrate on building a strong system of financial intermediaries

Answer:

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Banks provide the services of risk sharing, liquidity, and information Most small savers and small borrowers use banks and other financial intermediaries in order to take advantage of these services

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