[Solved] 1) What is meant by asset transformation;

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1) What is meant by asset transformation; how does a bank engage in asset transformation? What is financial intermediation? 2) Interest is paid to the

1) What is meant by asset transformation; how does a bank engage in asset transformation? What is financial intermediation?

2) Interest is paid to the lender in compensation for the opportunity cost of lending funds. Please name two parts of this opportunity cost that are foregone when making a loan.

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