Which one of the following is not an economic benefit provided by depository institutions?
A)pooling risk
B)providing a place for reserve account deposits
C)lowering the cost of monitoring borrowers
D)lowering the cost of borrowing
E)creating liquidity

Question

Quizplus · Accepted Answer

Providing a place for reserve account deposits is not an economic benefit provided by depository institutions. It is a regulatory requirement that depository institutions maintain reserves at the Federal Reserve or other approved institutions. The other options listed (pooling risk, lowering the cost of monitoring borrowers, lowering the cost of borrowing, and creating liquidity) are all economic benefits provided by depository institutions.

Which One of the Following Is Not an Economic Benefit