Depository institutions undertake all the following activities except they do not ________.

Question

Quizplus · Accepted Answer

Depository institutions do not print money, only the central bank (such as the Federal Reserve in the US) has that authority. However, depository institutions do play a crucial role in creating liquidity by accepting deposits and providing funds for loans and investments. They also minimize the cost of monitoring borrowers by using screening and monitoring mechanisms, and pool risk by diversifying their portfolios.

Depository Institutions Undertake All the Following Activities Except They Do