Since one function of financial intermediaries is to provide liquidity:

Question

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Financial intermediaries must have enough liquidity to meet the demands of their customers. This requires them to have a good understanding of their customers' needs and to have the necessary funds available to meet those needs. While they may keep some funds in short-term securities, they cannot keep all their funds there, as this would limit their ability to provide liquidity when needed. There is no specific regulation requiring financial intermediaries to keep a certain percentage of their assets in cash.

Since One Function of Financial Intermediaries Is to Provide Liquidity