1. What is the role of a financial intermediary?

A. It facilitates the different needs of lenders and borrowers.

2. What is the disadvantage of borrowing money from an individual as mentioned in the text?

C. Time consuming

3. How do banks as a financial intermediary raise funds?

B. From customers’ money deposits

4. What is the main idea of the second paragraph of text II?

B. The reason why frictional unemployment is a bad thing.

5. When does frictional unemployment often occur?

D. During a healthy economic state

6. What can companies benefit from frictional unemployment?

D. Getting employees who have the right type of qualifications.