Jonathan Wynn knows that if he wanted to purchase a Treasury Bill,the minimum amount he would spend would be close to $10,000.He also knows that he could deposit $1,000 in a money market deposit account at a bank and earn about the same rate of interest.Jonathan does not have $10,000 to invest in a Treasury Bill.If Jonathan puts his money in the bank,which service that a bank can provide,is he taking advantage of?
A)Risky arbitrage services
B)Liquidity services
C)Delegated monitoring services
D)Divisibility of money services
E)Credit services

Question

Quizplus · Accepted Answer

Jonathan is taking advantage of the divisibility of money services, as he can invest a smaller amount ($1,000) in a money market deposit account instead of needing the larger amount ($10,000) required for a Treasury Bill.

Jonathan Wynn Knows That If He Wanted to Purchase a Treasury