When an FI functions as a broker, they are selling a financial asset that they have created and will continue to hold on their balance sheet.

Question

Quizplus · Accepted Answer

When an FI functions as a broker, they are acting as an intermediary between buyers and sellers of financial assets, but they are not necessarily selling an asset that they have created and hold on their balance sheet. They may be facilitating trades of assets created by other parties.

When an FI Functions as a Broker, They Are Selling