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Why Are Securities Market Institutions Not Considered to Be Financial

Question 12

Multiple Choice

Why are securities market institutions not considered to be financial intermediaries?


A) Because they have no direct dealings with the general public
B) Because they don't acquire funds from savers to invest in borrowers
C) Because they are not allowed to pay interest on the deposits they receive
D) Because they fail to provide the services of risk-sharing, liquidity, and information

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