7 In contrast to individual investors, financial intermediaries will be willing to make longer term loans, and at a lower cost to borrowers, because:

1. They are counting on successive deposits providing the funds until maturity.
2. Individual investors are more apt to make long-term loans.
3. All risk is eliminated.
4. None of the above.
5. All of the above.

8. Investors who place their funds in an investment company, which in turn invests the funds received in the stock of a large number of companies benefit from:

1. Diversification.
2. Reduced risk.
3. Lower cost.
4. All of the above.
5. a and b only.

19. With a debit card,

1. A bill is sent to the debit cardholder periodically requesting payment for transactions that have been made in the past.
2. Funds are immediately withdrawn from the purchasers account at the time the transaction takes place.
3. Funds are withdrawn periodically (usually once a month) for transactions made by the cardholder during the previous month.
4. All of the above.
5. None of the above.