ADIs Enhance the Flow of Funds Through Intermediation by Transforming

question 95

Multiple Choice

ADIs enhance the flow of funds through intermediation by transforming:

• A)many small loans into fewer, larger deposits
• B)long-term deposits into short-term loans
• C)the risk posed by borrowers into a risk acceptable by depositors
• D)interest expense into interest revenue.
• E)All of these.

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Definitions:

Business Communication

The sharing of information between people within an organization or between a company and its customers.

Mistake

An error or fault in action, calculation, opinion, or judgment caused by poor reasoning, carelessness, or insufficient knowledge.

You-Viewpoint

A writing approach that focuses on the reader, often addressing them directly and prioritizing their interests, needs, or feelings.

Dishonest Technique

A dishonest technique involves methods or strategies intended to deceive, manipulate, or mislead individuals or groups for various purposes.