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
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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
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.
Clear my choice
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