Financial Intermediaries Play the Basic Role of Transforming Financial Assets

Multiple Choice

Financial intermediaries play the basic role of transforming financial assets that are less desirable for a large part of the public into other financial assets (their own liabilities) which are more widely preferred by the public. This transformation involves at least one of four economic functions. Which of the below is NOT one of these functions?

A) providing maturity intermediation
B) enhancing risk via diversification
C) reducing the costs of contracting and information processing
D) providing a payments mechanism