The commercial bank by issuing its own financial claims transforms a longer-term asset into a shorter-term one by giving the borrower a loan for the length of time sought and the investor/depositor a financial asset for the desired investment horizon. This function of a financial intermediary is called ________.
A) diversification.
B) maturity intermediation.
C) information processing costs.
D) providing payment mechanisms.
Correct Answer:
Verified
Q1: Which of the below statements is FALSE?
A)
Q2: Financial enterprises, more popularly referred to as
Q3: Because of uncertainty about the timing and/or
Q5: Some nonfinancial enterprises have subsidiaries that provide
Q6: Financial intermediaries get funds by issuing financial
Q7: Financial intermediaries play the basic role of
Q8: Which of the below statements is FALSE?
A)
Q9: With this type of liability, the timing
Q10: The economic function of financial intermediaries that
Q11: _ is a broadly used term to
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