A dollar borrowed from ________ is returned to a domestic borrower with interest.
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financial system
A well- functioning ________ helps people reduce their exposure to risks.
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Transaction costs
________, financial risk, and the desire for liquidity are the three major issues that borrowers and lenders face.
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transaction costs
The term ________ refer to the expenses of executing a deal and any of the steps associated with the process.
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financial risk
The term ________ refers to the uncertainty about future outcomes that incorporate financial gains and losses.
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Loan
________- backed securities are traded on financial markets in a similar manner to bonds.
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diversifying
A(n) business owner can reduce the risk of loss by ________ assets, investing in a variety of assets with unrelated (or independent) hazards.
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money market
The ________ is in equilibrium at the interest rate rE: the quantity of money demanded by the public is equal to M, which is the quantity of money supplied.
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Transaction costs
________, financial risk, and the demand for liquidity are the three major issues confronting borrowers and lenders.
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