Question
Financial institutions fulfill several special roles, including the following: Serving as asset transformers and/or brokers Providing liquidity Managing price risk Reducing transaction and information
Financial institutions fulfill several special roles, including the following: Serving as asset transformers and/or brokers Providing liquidity Managing price risk Reducing transaction and information costs Commercial banks are one of the most important types of financial institutions. Of the above special roles, which is the most important for commercial banks? Why? Your response should indicate that you understand what the roles are and how commercial banks operate to fulfill these roles. You should also be sure to support your position.
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