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.

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