Which of the following statements is INCORRECT ?

Group of answer choices

The risk that the sale price of an asset will be less than the purchase price of an asset is called liquidity risk.

Failure to monitor the actions of firms in a timely and complete fashion after purchasing securities in the firms exposes investors to agency costs.

Financial institutions act as intermediaries between suppliers and demanders of money

As a delegated monitor, a financial institution's actions reduce agency costs.

Financial institutions provide economies of scale in transaction costs