Which of the following is not a key function of the banking system
A) offering access to an efficient payments system
B) economies of scale in pooling the savings of many small depositors
C) allowing the efficient operation of financial markets
D) more effective monitoring of small and medium size borrowers relative to financial markets
E) maturity transformation of instant access deposits into longer term loans

Question

Quizplus · Accepted Answer

The efficient operation of financial markets is not a direct function of the banking system; rather, it is a broader function of the financial system as a whole, which includes banks, but also other financial institutions and markets.

Which of the Following Is Not a Key Function of the Banking