Lines of Credit Provided by Financial Intermediaries

question 19

Multiple Choice

Lines of credit provided by financial intermediaries:

• A)Decrease liquidity for customers but increase income for the intermediary
• B)Are pre-approved loans that can increase liquidity and lowering transaction costs
• C)Are costly for intermediaries to provide so are only available to large commercial customers
• D)Require deposits in the intermediary that equal or exceed the amount of the line of credit

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