All else equal, advantages of a DI operating as an asset broker in regard to mortgages includes all of the following EXCEPT
A)lower regulatory taxes.
B)increased fee-based income.
C)increased liquidity.
D)decreased asset and liability duration mismatch.
E)increased capital requirements.

Question

Quizplus · Accepted Answer

Increased capital requirements would not be an advantage of a DI operating as an asset broker in regard to mortgages. While the other choices all represent potential advantages, increased capital requirements could be a disadvantage as it may limit the DI's ability to take on more mortgage assets.

All Else Equal, Advantages of a DI Operating as an Asset