Which One of the Following Is Not a Service of Depository

question 89

Multiple Choice

Which one of the following is not a service of depository institutions?

• A)Lowering the cost of borrowing.
• B)Providing a place for reserve account deposits.
• C)Pooling risk.
• D)Creating liquidity.
• E)Lowering the cost of monitoring borrowers.

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Definitions:

Demand Curve

A visual representation indicating the quantity of a good consumers are ready to purchase at various prices, usually sloping downwards to the right.

Monopoly Firm

A company that is the sole provider of a product or service in a market, facing no direct competition.

Computing Monopoly Profit

Involves calculating the difference between a monopolist's total revenues and total costs, highlighting the profit maximization under a monopoly market structure.

Maximum Profits

The highest possible financial gain a business can achieve, calculated as total revenue minus total costs, under given market conditions and operational capacities.