Please provide 100% ACCURATE ANSWER:

38. Institutions that specialize in off-balance-sheet advisory services are called:

A. depository financial institutions

B. investment banks

C. contractual institutions

D. finance companies

39. Small savers prefer to use financial intermediaries rather than lending directly to borrowers because:

A. financial intermediaries offer the savers a wide portfolio of financial instruments

B. financial intermediaries offer much higher interest rates than can be obtained directly from borrowers

C. borrowers dislike dealing with savers

D. savers have a claim with the borrower by way of the financial intermediary

40. Which of the following is NOT a possible disadvantage of direct financing?

A. Matching amounts of funds to be borrowed with those to be lent.

B. Cost of the financial intermediary involved.

C. Assessment of the risk of the borrower.

D. Cost of preparing legal contracts, taxation and accounting advice.