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home assignments in Chapter 21 - Multiple Choice Questions...

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Multiple Choice Questions 1. In the United Stated saving is allocated to its most productive use by: A. the Federal Reserve. B. the Federal, state, and local governments. C. regulations and laws designed to improve productivity. D. a decentralized, market-oriented financial system. 2. Decentralized market-based financial systems improve the allocation of saving by: 3. Firms that extend credit to borrowers using funds from savers are called: 4. Privately owned firms that accept deposits from individuals and businesses and use those deposits to make loans are called: 5. Financial intermediaries, such as commercial banks, help borrowers, particularly small borrowers, by: A. providing information to evaluate potential lenders. B. offering tax preferred borrowing opportunities. C. eliminating the risk of borrowing. D. providing credit that might otherwise not be available.
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