_________ and __________ allow a financial intermediary to offer safe

1)  _________ and __________ allow a financial intermediary to offer safe, liquid liabilities such as deposits while investing the depositors money in riskier, illiquid assets.

A) Diversification; high equity returns

B) Price risk; collateral

C) Free riders; regulations

D) Monitoring; diversification

E) Primary markets; foreign exchange markets

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