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) both a and b
E) both a and c
Correct Answer:
Verified
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