Financial Intermediaries Provide Customers with Liquidity Services

question 80

Multiple Choice

Financial intermediaries provide customers with liquidity services. Liquidity services

• A)make it easier for customers to conduct transactions.
• B)allow customers to have a cup of coffee while waiting in the lobby.
• C)are a result of the asymmetric information problem.
• D)are another term for asset transformation.

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Definitions:

Potential Benefit

The prospective advantage or gain that may be realized from a specific action or decision, often considered in planning and analysis.

Probability

A quantitative assessment of an event's probability, given as a number from 0 to 1.

Choosing

The act of selecting from a number of alternatives or possibilities.

Day

A unit of time equivalent to 24 hours, representing the period it takes for the Earth to complete one full rotation on its axis.