Depository Banks

Multiple Choice

Depository banks:

A) buy short-term securities from investors, change their maturity, and sell them as long-term securities to other investors.
B) buy long-term securities from investors, change their maturity, and sell them as short-term securities to other investors.
C) accept short-term deposits from depositors and use them to make long-term loans.
D) accept long-term deposits from depositors and use them to make short-term loans.