Many households place funds with financial institutions because many FI accounts provide

1. lower denominations than other securities.
2. flexible maturities verses other interest-earning securities.
3. better liquidity than directly negotiated debt contracts.
4. less price risk if interest rates change.
5. All of the above

S$ LIBOR is lower than S$ prime lending rate at banks, but higher than the S$ fixed deposit rate and saving deposit rate

1. yes
2. no

Which type of FI is the most common type of FI?

1. commercial banks
2. savings banks
3. investment banks
4. credit unions