Economics · Banking and Financial Institutions
Consider the following statements regarding non-bank financial intermediaries (NBFIs) and commercial banks: 1. Non-bank financial intermediaries can create liquidity, but cannot create money. 2. Non-bank financial intermediaries insist on higher collateral than banks. 3. Both commercial banks and non-bank financial intermediaries create demand deposits by borrowing from the Central bank. Which of the statements given above is/are correct?
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