4-57 Offering bank deposit-like accounts to individual customers by a securities firm involves

Question

Quizplus · Accepted Answer

Offering bank deposit-like accounts involves the function of cash management, where the securities firm manages the cash balances of individual customers and offers them an alternative to traditional bank deposits. This involves investing the money in low-risk, short-term securities like Treasury bills, commercial paper, or money market instruments. However, this does not necessarily involve trading, investment banking, market making, or other functions.

4-57 Offering Bank Deposit-Like Accounts to Individual Customers by a Securities