Since one function of financial intermediaries is to provide liquidity,

Multiple Choice

• they must keep all of their funds in short-term securities.

• they keep almost all of their funds in cash.

• they must know approximately how much liquidity their customers will need each day and have these funds available.

• regulations require financial intermediaries to keep 50% of their assets in cash.

Money that is used as a means of payment must be

Multiple Choice

• actual currency.

• coins and currency.

• coins, currency and credit cards.

• anything that is generally accepted as payment for goods and services.