As a delegated monitor, an FI's actions reduce agency costs.
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Q1: FIs are independent market entities that create
Q3: Secondary securities are securities that serve as
Q4: The more costly it is to supervise
Q5: FIs typically provide secondary claims to household
Q6: As an asset transformer, the FI issues
Q7: Financial institutions are subject to economies of
Q8: Financial institutions act as intermediaries between suppliers
Q9: Currently (2015) J.P.Morgan Chase is the largest
Q10: Because bank loans have a shorter maturity
Q11: If not done by FIs, the process
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