FIs Perform Their Intermediary Function in Two Ways

question 67

Multiple Choice

FIs perform their intermediary function in two ways:

• A) They specialise as brokers between savers and users.
• B) They serve as asset transformers by purchasing primary securities and issuing secondary securities.
• C) They serve as asset transformers by purchasing secondary securities and issuing primary securities.
• D) They specialise as brokers between savers and users and they serve as asset transformers by purchasing primary securities and issuing secondary securities.

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Definitions:

Pharynx

A muscular tube that connects the mouth and nasal passages to the esophagus and larynx, serving both respiratory and digestive functions.

Larynx

The voice box located in the neck through which air passes to the lungs, and contains vocal cords that produce sound.

Sinuses

Air-filled cavities located within the bones of the face and skull, connected to the nasal cavities.

Nasal Cavity

The large air-filled space behind the nose that is lined with mucosa and filters, warms, and moistens incoming air.