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.

---

Definitions:

Petty Cash Fund

A small amount of cash kept on hand for minor and incidental expenses.