Depository institutions do all the following EXCEPT
A) create required reserve ratios.
B) minimize the cost of obtaining funds.
C) create liquidity.
D) pool risks.

Name: Depository institutions do all the following EXCEPT A) create required reserve ratios. B) minimize the cost of obtaining funds. C) create liquidity. D) pool risks.
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Question

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Depository institutions do not create required reserve ratios. Reserve requirements are set by the central bank, such as the Federal Reserve in the United States.

Depository Institutions Do All the Following EXCEPT