Solved

When a Depository Institution Pools Risk, It

Question 556

Multiple Choice

When a depository institution pools risk, it


A) buys short and lends long.
B) borrows reserves from the Federal Reserve.
C) spreads loan losses across many depositors so that no one depositor faces a high degree of risk.
D) makes loans to just one firm.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions