Which function of an FI involves buying primary securities and issuing secondary securities?

Question

Quizplus · Accepted Answer

The function of asset transformation involves buying primary securities (such as loans, bonds, and mortgages) and issuing secondary securities (such as certificates of deposit, mutual funds, and insurance policies) to transform the nature of the asset and match it with the needs of the investors. This function is typically performed by financial intermediaries like banks, insurance companies, and investment firms. The other options (brokerage, investment research, and self-regulation) are also important functions of FIs but do not involve the buying and issuing of securities for asset transformation purposes.

Which Function of an FI Involves Buying Primary Securities and Issuing