Briiiiiiiiii9904 Briiiiiiiiii9904
  • 10-06-2021
  • Business
contestada

Financial Institutions are described as having an asset transformation function. Explain this function and describe how a bank transforms assets.

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Nyctalus
Nyctalus Nyctalus
  • 12-06-2021

Answer:

In simple words, Asset transformation can be understood as the process of turning small denominational, instantly available, and generally riskless deposit accounts into lenders moderately risky, high denomination assets that are returned according to a specified schedule–from obligations (deposits) with distinct traits.

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