The practice of borrowing short and lending long
A) pools risk.
B) minimizes the cost of monitoring borrowers.
C) creates liquidity.
D) All of the above answers are correct.
C
Economics
You might also like to view...
Refer to the scenario above. Phillip should play this game using ________
A) backward induction B) forward induction C) mixed strategies D) his dominated strategy
Economics
In monopolistic competition, a firm must determine what price to set for its good because
A) the demand for its good is not perfectly elastic. B) the demand for its good is perfectly elastic. C) there are many buyers. D) there are many sellers.
Economics