The traditional financial intermediation role of banking has been to make ________-term loans and to fund them with ________-term deposits.

Question

Quizplus · Accepted Answer

The traditional role of banking has been to make long-term loans such as mortgages, business loans, and auto loans, and fund them with short-term deposits such as savings accounts and checking accounts. This has been the main way that banks have provided liquidity and credit to the economy.

The Traditional Financial Intermediation Role of Banking Has Been to Make