When a financial intermediary can repeatedly use standardised documents,it is engaging in:
A) liability management.
B) liquidity management.
C) credit transformation.
D) economies of scale.

Question

Quizplus · Accepted Answer

The repeated use of standardised documents allows a financial intermediary to achieve economies of scale, which means that it can provide its services more efficiently and at a lower cost. This can increase profitability and competitiveness, as well as enhance the intermediary's ability to expand and serve a larger customer base. Liability management, liquidity management, and credit transformation are all important functions of financial intermediaries, but they are not directly related to the use of standardised documents.

When a Financial Intermediary Can Repeatedly Use Standardised Documents,it Is