How do financial intermediaries raise funds according to the material?

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Multiple Choice

How do financial intermediaries raise funds according to the material?

Explanation:
The key idea is that financial intermediaries access liquidity through central-bank lending facilities, using securities as collateral. Banks can borrow from the central bank, pledging bonds or other eligible securities to secure the loan. This arrangement provides funds when market funding is tight and helps maintain liquidity in the banking system. While deposits from customers are a common funding source, the material highlights the central-bank borrowing route with bonds as collateral as the described method for raising funds.

The key idea is that financial intermediaries access liquidity through central-bank lending facilities, using securities as collateral. Banks can borrow from the central bank, pledging bonds or other eligible securities to secure the loan. This arrangement provides funds when market funding is tight and helps maintain liquidity in the banking system. While deposits from customers are a common funding source, the material highlights the central-bank borrowing route with bonds as collateral as the described method for raising funds.

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