________ and ________ Allow a Financial Intermediary to Offer Safe

question 17

Multiple Choice

________ and ________ allow a financial intermediary to offer safe liquid liabilities such as deposits while investing the depositors' money in riskier illiquid assets.

• A)Diversification; high equity returns
• B)Price risk; collateral
• C)Free riders; regulations
• D)Monitoring; diversification
• E)Primary markets; foreign exchange markets

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