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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
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
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-FIs closely monitor the riskiness of their assets.
-FIs can diversify away some of their risk.
-FIs can diversify away some of their risk and the federal government requires them to do so.
-FIs can diversify away some of their risk and closely monitor the riskiness of their assets.
-the federal government requires them to do so.
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