Economists believe that the major reason that financial intermediaries move a gr

Question

Economists believe that the major reason that financial intermediaries move a greater volume of funds between borrowers and lenders than do financial markets is

A) the higher interest rates that financial intermediaries are able to offer to lenders.

B) the lower interest rates that financial intermediaries are able to offer to borrowers.

C) the advantage that financial intermediaries have in reducing information costs.

D) the tax advantages that financial intermediaries receive from the government.

Explanation / Answer

B) the lower interest rates that financial intermediaries are able to offer to borrowers.

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