► Zarai Tarkaytee Bank LTD
► Soneri Bank
► Khushali Bank
Which of the following is NOT true for financial institutions?
► It reduces the transaction cost
► It reduces the information cost
► It reduces the asymmetric information
► It doesn't make long term loans
The rule of 72 says that at 12% interest $100 should become $200 in about _________.
► 72 months
► 100 months
► 12 years
► 8.2 years
Mr. Ghazanfar obtains a home improvement loan from Allied Bank.This loan is:
► Mr. Ghazanfar's asset and the bank's liability
► Mr. Ghazanfar 's asset, but the liability belongs to the bank's depositors
► Mr. Ghazanfar 's liability and an asset for the bank
► Both Mr. Ghazanfar's and bank's liability
Financial intermediaries provide small lender-savers all of the following advantages EXCEPT:
► Greater liquidity
► Lower transaction cost
► Lower risk
► Higher return
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