Economics

Anonymous
timer Asked: May 5th, 2014

Question description

If financial intermediaries charge a higher rate of interest to lenders than they pay to borrowers, then A.) investing with borrowed funds involves a higher opportunity cost than investing with savings B.) investing with saving involves a higher opportunity cost than investing with borrowed funds C.) a firm is charged less interest to borrow than it can earn on savings D.) the opportunity cost of investing with borrowed funds equals the opportunity cost of investing with savings E.) a firm does not consider the market rate of interest when it makes investment decisions

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