Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. banking institutions serve as intermediaries in fi

Banking institutions serve as intermediaries in financial markets by facilitating transactions between suppliers of funds...

60.1K

Verified Solution

Question

Accounting

Banking institutions serve as intermediaries in financial markets by facilitating transactions between suppliers of funds and the demanders of funds while reducing transaction costs and improving monitoring. Furthermore, banks are able to provide these services because of their ability to diversify and their knowledge of the markets. Finally, banks are able to take these risks because FDIC insurance covers any losses that banks incur. True False
image
Banking institutions serve as intermediaries in financial markets by facilitating transactions between suppliers of funds and the demanders of funds while reducing transaction costs and improving monitoring. Furthermore, banks are able to provide these services because of their ability to diversify and their knowledge of the markets. Finally, banks are able to take these risks because FDIC insurance covers any losses that banks incur. True False

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students