- 9 Economists Group Commercial Banks Savings And Loan Associations Credit Unions Mutual Funds Mutual Savings Banks 1 (84.84 KiB) Viewed 33 times
9. Economists group commercial banks, savings and loan associations, credit unions, mutual funds, mutual savings banks, insurance companies, pension funds, and finance companies together under the heading financial intermediaries. Financial intermediaries A. act as middlemen, borrowing funds from those who have saved and lending these funds to others. B. produce nothing of value and are therefore a drain on society's resources. C. help promote a more efficient and dynamic economy. D. do all of the above. E. do only A and C of the above. 10. Banks do not want to hold too much capital because A. they do not bear fully the costs of bank failures B. higher returns on equity are earned when bank capital is smaller, all else equal C. higher capital levels attract the scrutiny of regulators D. all of the above E. only A and B of the above