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Lines of Credit Provided by Financial Intermediaries

Question 31

Multiple Choice

Lines of credit provided by financial intermediaries:


A) decrease liquidity for customers but increase income for the intermediary.
B) are pre-approved loans that can increase liquidity and lowering transaction costs.
C) are costly for intermediaries to provide so are only available to large commercial customers.
D) require deposits in the intermediary that equal or exceed the amount of the line of credit.

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