Which intermediation function results in an FI's exposure to liquidity risk?

A. Information production.
B. Asset transformation.
C. Conduit for monetary policy.
D. Lender of last resort.
E. Brokering between funds deficit units and funds surplus units.

Ans: B. Asset transformation.

Business

You might also like to view...

Department stores are now facing increased competition from factory outlets, membership clubs, and flea markets. This illustrates _____

a. rationalized retailing b. scrambled merchandising c. the retail life cycle d. the wheel of retailing

Business

____________ are self-administered paper-and-pencil or computer-based data-collection forms

a. Data mining b. Q uestionnaires c. Data-bases d. Surveys e. Both b and c

Business