Question 5 of 50 8. What is the difference between investment banking houses and

Question

Question 5 of 50 8. What is the difference between investment banking houses and depository financial intermediaries? 0 A. Investment banks are involved in direct transfers of capital to individuals, while financial intermediaries in indirect transfers to government O B. Investment banks are regulated, while financial intermediaries are not regulated C. Investment banks operate in private markets and financial intermediaries in public markets. O D. Both are involved in transfers of capital but depository financial intermediaries transform the characteristics of the funds in terms of maturity, face value, and risk. Investment banks transfer securities in a constant form. Reset Selegion

Explanation / Answer

Option D is correct

Depositories accept deposits which are short term and lend out which is normally longer in maturity. On the other hand investment banks do not change the nature of capital

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