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Homework answers / question archive / Financial intermediaries provide customers with liquidity services
Financial intermediaries provide customers with liquidity services. Liquidity services A) are another term for asset transformation. B) make it easier for customers to conduct transactions. C) are a result of the asymmetric information problem. D) allow customers to have a cup of coffee while waiting in the lobby.
Answer
B )
Explanation
The correct option is B "make it easier for customers to conduct transactions". Liquidity refers to the ease with which an asset can be converted into cash without any loss. So, If Financial intermediaries provide customers with liquidity services It make it easier for customers to conduct transactions.
