Financial Intermediaries Transfer Financial Assets That Are Less Desirable into Other

Multiple Choice

Financial intermediaries transfer financial assets that are less desirable into other financial assets, which are more widely preferred by the public. This transformation involves which of the following economic functions?

A) Providing maturity intermediation.
B) Risk reduction via diversification.
C) Reducing the costs of contracting and information processing.
D) Providing a payments mechanism.
E) All of the above.