Depository institutions undertake all the following activities except they do not _ _.
A) print money
B) create liquidity
C) minimize the cost of monitoring borrowers
D) pool risk

Question

Quizplus · Accepted Answer

Depository institutions do not have the authority to print money. This is the responsibility of the central bank of the country. Depository institutions create liquidity by accepting deposits and making loans, minimize the cost of monitoring borrowers to assess creditworthiness, and pool risk by diversifying their portfolio of loans and investments.

Depository Institutions Undertake All the Following Activities Except They Do