Since One Function of Financial Intermediaries Is to Provide Liquidity

question 56

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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Definitions:

Implicit Memory

A type of memory in which previous experiences aid the performance of a task without conscious awareness of these previous experiences.

Long-Term Memory

Long-term memory is the capacity of the brain to store a large amount of information for periods ranging from hours to a lifetime.

Numerical Memory

The ability to remember and recall numbers, sequences of numbers, and numerical information.

Sensory Memory

The shortest-term element of memory, it acts as a buffer for stimuli received through the senses, allowing a trace to be retained for a brief moment after the original stimulus has ceased.