Accounting Multiple Choice Question – 23 April 2025

In both bank-based and market-based financial systems, financial intermediation is of increasing importance due to its ability to address the market imperfection of?

Select ONE answer:

1. Monopoly
2. Asymmetric information
3. Trade barriers
4. Tariffs and quotas

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct == > Financial intermediation overcomes the problem of asymmetric information associated with direct financing.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.