Question: Question One: When interest rate decrease, how might businesses and consumers change their economic behavior? Question Two: Because corporations do not actually raise any funds
Question One: When interest rate decrease, how might businesses and consumers change their economic behavior?
Question Two: Because corporations do not actually raise any funds in secondary markets, they are less important to the economy than primary markets. Comment.
Question Three: In Brazil, a country that was undergoing a rapid inflation, many transactions were conducted in dollars rather than in real, the domestic currency. Why?
Question Four: in a world without information cost and transaction costs, financial intermediaries would not exist!, Is this statement true, false or uncertain? Explain your answer.
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