A financial intermediary creates claims on itself, when it accepts depositors' funds.
举一反三
- An investment banker is not a financial intermediary because A: it does not transfer money from investors to firms B: it does not create claims on itself C: it does facilitate the transfer of funds D: it creates claims on itself
- When an individual has immediate access to their funds from an account with a financial intermediary, the intermediary is engaging in: () A: asset transformation. B: liability management. C: liquidity management. D: credit transformation.
- When a large company issues a financial instrument into the financial markets: () A: funds flow indirectly from saver to borrower. B: the cost of funds is generally higher owing to the risk involved. C: it buys a financial claim. D: it sells a financial claim.
- The intermediary functions of a financial market not include the following:
- A pension plan that grants mortgage loans A: is an example of a financial intermediary B: cannot suffer losses C: is called a savings and loan association D: is not a financial intermediary