Depository institutions do all of the following EXCEPT
A) set the required reserve ratio.
B) create liquidity.
C) pool risks.
D) minimize the cost of obtaining funds.

Question

Quizplus · Accepted Answer

The required reserve ratio is set by the central bank or monetary authority of a country, not by depository institutions themselves. The other options (B, C, D) are functions or benefits provided by depository institutions.

Depository Institutions Do All of the Following EXCEPT