Question at position 27 Why do indirect finance and financial intermediaries dominate over direct finance in most economies?Because financial intermediaries charge lower interest rates than the market.Because borrowers prefer fewer regulatory requirements in indirect finance.Because direct finance provides higher returns to lenders, and hence higher costs for borrowers.Because asymmetric information makes it difficult for investors to evaluate borrowers directly.Single choice

A

Because financial intermediaries charge lower interest rates than the market.

B

Because borrowers prefer fewer regulatory requirements in indirect finance.

C

Because direct finance provides higher returns to lenders, and hence higher costs for borrowers.

D

Because asymmetric information makes it difficult for investors to evaluate borrowers directly.

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