26-61 All else equal,advantages of a DI operating as an asset broker in regard to mortgages includes all of the following EXCEPT
A)lower regulatory taxes.
B)increased fee-based income.
C)increased liquidity.
D)decreased asset and liability duration mismatch.
E)increased capital requirements.

Question

Quizplus · Accepted Answer

The advantages of a DI operating as an asset broker in regard to mortgages include lower regulatory taxes, increased fee-based income, increased liquidity, and decreased asset and liability duration mismatch. However, increased capital requirements would not be an advantage for the DI in this context as it would increase costs and decrease profitability.

26-61 All Else Equal,advantages of a DI Operating as an Asset