1-59 Many households place funds with financial institutions because many FI accounts provide

Question

Quizplus · Accepted Answer

All of the choices listed provide reasons why households may choose to place funds with financial institutions. Lower denominations are typically available with FI accounts compared to other securities, and they often offer more flexible maturities than directly negotiated debt contracts. Additionally, FI accounts generally provide better liquidity, making it easier for households to access their funds if needed. Lastly, FI accounts typically involve less price risk if interest rates change, providing a measure of stability and security for households.

1-59 Many Households Place Funds with Financial Institutions Because Many