Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) While the financial system creates financial assets, it plays no role in increasing their liquidity.
B) While financial assets are not created by the financial system, the financial system provides ways of increasing their liquidity.
C) The financial system has little to do with either creating or increasing the liquidity of financial assets.
D) The financial system both creates financial assets and provides ways of increasing their liquidity.