Which of the following statements is incorrect?
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Question

Which of the following statements is incorrect?Select one:a.

A financial intermediary may act as a broker to bring together funds deficit and funds surplus units.

b.

As a delegated monitor, an FI keeps track of required interest and principal payments on loans it originates.

c.

Many households place funds with financial institutions because many FI accounts provide better liquidity than directly negotiated debt contracts.

d.

Credit risk refers to the possibility that a firm's owners or managers will take actions contrary to the promises contained in the covenants of the securities the firm issues to raise funds.

e.

An advantage of depositing funds into a typical bank account instead of directly buying corporate securities is that monitoring is done by the bank on your behalf.

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