FIs with a steady and predictable inflow and outflow of funds
A)hold highly liquid assets.
B)hold more long-term and less liquid assets than intermediaries whose inflows and outflows are not as steady and predictable.
C)are much more solvent than other intermediaries.
D)hold many short-term assets.

Question

Quizplus · Accepted Answer

Financial institutions (FIs) with a steady and predictable inflow and outflow of funds can afford to hold more long-term and less liquid assets than those whose inflows and outflows are not as predictable, because they can better plan for their liquidity needs over time.

FIs with a Steady and Predictable Inflow and Outflow of Funds