66. An example of how financial intermediaries can assist in shifting an individual's consumption to the future is: A. lending money to the individual. B. providing a checking account. C. opening a...

66. An example of how financial intermediaries can assist in shifting an individual's consumption to the future is:

A. lending money to the individual.
B. providing a checking account.

C.
opening a savings account.
D. requiring purchases to be in cash.

AACSB: Reflective Thinking Skills
Bloom's: Understanding
Difficulty: Hard
Learning Objective: 2-3

67. An example of how financial intermediaries can assist in shifting an individual's consumption forward in time is:


A.
providing a line of credit.
B. opening a passbook account.
C. starting a life insurance policy.
D. investing in an index fund.

AACSB: Reflective Thinking Skills
Bloom's: Understanding
Difficulty: Medium
Learning Objective: 2-3

68. One reason suggesting that banks may be better than individuals at matching lenders to borrowers is that banks:

A. can shift loan risk to their deposit customers.
B. are motivated by the potential for profit.
C. do not have any income tax liability.

D.
have information to evaluate creditworthiness.