Financial intermediaries (FIs) can offer savers a safer,more liquid investment than a capital market security,even though the intermediary invests in risky illiquid instruments because
A) FIs can diversify away some of their risk.
B) FIs closely monitor the riskiness of their assets.
C) the federal government requires them to do so.
D) FIs can diversify away some of their risk and closely monitor the riskiness of their assets.
E) FIs can diversify away some of their risk and the federal government requires them to do so.
Correct Answer:
Verified
Q23: Discuss how secondary markets benefit issuers and
Q24: Secondary markets help support primary markets because
Q25: The diagram below is a diagram of
Q26: _ and _ allow a financial intermediary
Q27: Match the intermediary with the characteristic that
Q29: Depository institutions (DIs)play an important role in
Q30: Money markets trade securities that
I. mature in
Q31: The most diversified type of depository institutions
Q32: Depository institutions include
A)banks.
B)thrifts.
C)finance companies.
D)all of these choices
Q33: Commercial paper is
A)a time draft payable to
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