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ice5192 ice5192
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6 years ago
A depository institution can make highly illiquid and long-maturity loans with funds obtained by issuing transaction deposits because
A) depository institutions tend to be owned by individuals with a high tolerance of risk.
B) most transaction depositors have very transaction patterns.
C) depositors, taken as a group, behave in a predictable manner.
D) depository institutions are skilled at evaluating credit risks.
E) depository institutions have a large pool of assets to draw from.
Textbook 
Macroeconomics, Canadian Edition

Macroeconomics, Canadian Edition


Edition: 5th
Author:
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wrote...
6 years ago
C
ice5192 Author
wrote...
5 years ago
Yes, correct
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