Financial Intermediaries (FIs)can Offer Savers a Safer,more Liquid Investment Than

question 9

Multiple Choice

Financial intermediaries (FIs) can offer savers a safer,more liquid investment than a capital market security,even though the intermediary invests in risky illiquid instruments because

• A)FIs can diversify away some of their risk.
• B)FIs closely monitor the riskiness of their assets.
• C)the federal government requires them to do so.
• D)FIs can diversify away some of their risk and closely monitor the riskiness of their assets.
• E)FIs can diversify away some of their risk and the federal government requires them to do so.

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Definitions:

Ocean Dumping

The disposal of waste materials directly into the ocean, often regulated to prevent environmental harm.

Marine Protection, Research, and Sanctuaries Act

United States legislation focused on the preservation and management of marine environments, often referred to as the Ocean Dumping Act.

Clean Water Act

U.S. federal law aimed at reducing pollution and protecting the quality of the nation's waterways.

Criminal Sanctions

Penalties imposed by law for violating criminal statutes, including fines, imprisonment, or other forms of punishment.