Since One Function of Financial Intermediaries Is to Provide Liquidity

question 8

Multiple Choice

Since one function of financial intermediaries is to provide liquidity:

• A) they must keep all of their funds in short-term securities.
• B) they keep almost all of their funds in cash.
• C) they must know approximately how much liquidity their customers will need each day and have these funds available.
• D) regulations require financial intermediaries to keep 50% of their assets in cash.

---

Definitions:

Motor Neuron

A type of neuron that transmits signals from the brain or spinal cord to muscles or glands, triggering movement or action.

Sciatic

Pertaining to the sciatic nerve, which is the longest nerve in the human body, running from the lower back down through the leg.

Femoral

Pertaining to the femur or the thigh region.

Pudendal

Related to the pudendal nerve, which supplies areas such as the external genitalia and the skin around the anus and perineum.