What are the functions of depository institutions? The functions of depository institutions include _______. A. maximizing...
What are the functions of depository institutions? The functions of depository institutions include _______.
A. maximizing Upper M 1 and Upper M 2
B. implementing monetary policy
C. lowering the cost of monitoring borrowers
D. providing debt counseling
Homework Answers
ANswer
Option C
lowering the cost of monitoring borrowers
Depositary institutions are financial institutions which can accepts deposits from consumers and make loans or invests the funds, so the institutions create liquidity, pool risks and decrease borrowing costs.
Functions of depository institutions are:
1. functions of depository institutions
2. creates liquidity
3. pool risks
4. lower the cost of borrowings
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What are the functions of depository institutions? The
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