Ch 8 q.docx - 1 For each of the following countries...

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1. For each of the following countries, identify the single most important (largest) and least important (smallest) source of external funding: Canada; United States; Germany; Japan. Comment on the similarities and differences among the countries’ funding sources.
2. How can economies of scale help explain the existence of financial intermediaries?
3. Describe two ways in which financial intermediaries help lower transaction costs in an economy.
4. Why are financial intermediaries willing to engage in information collection activities when investors in financial instruments may be unwilling to do so?

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