Multiple Choice
The existence of banks:
A) increases the severity of the trade-off between rate of return and liquidity.
B) decreases the severity of the trade-off between rate of return and liquidity.
C) has no effect on the trade-off between rate of return and liquidity.
D) decreases both the rate of return and the liquidity of its customers' assets.
Correct Answer:

Verified
Correct Answer:
Verified
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