Before the financial crisis, mortgage-backed securities were considered to be very safe investments.  Later, the underlying risks associated with these securities were fully realized, and they were found to be much riskier than initially thought.  What impact does this new information have on the demand for these assets?   A. Quantity demand did not change   B. Quantity demand declined   C. Quantity demand increased

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Functions of Financial Institutions

Financial institutions are businesses that are formed to deal with financial and monetary transactions. These organizations primarily accept deposits, advance loans, make investments, and provide foreign exchange services. Financial institutions include, but are not limited to, banks, insurance companies, trust companies, brokerage firms, and investment bankers. Because financial institutions play such an important role in the economy in terms of monetary transactions, regulating their activities has become a requirement for governmental authorities. As a result, the government creates a multitude of laws and regulations to oversee the activities of financial institutions.