Financial Innovation

question 30

Multiple Choice

Financial innovation

• A)may reduce the cost of risk sharing to lenders.
• B)is discouraged by the government because of its adverse impact on tax revenues.
• C)will generally reduce the liquidity of financial assets.
• D)has occurred frequently in financial markets, but rarely in financial intermediaries.

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Definitions:

Production Order

An authorized instruction or command to begin the manufacturing process of a specific quantity of goods within a scheduled timeframe.

Customer Order

A request made by a customer for the purchase of goods or services provided by a company.

Warehouse Activity

Refers to all the movements, processes, and operations involved in the storage, handling, and distribution of goods within a warehouse.

Warehouse Activities

The various tasks involved in the operation of a warehouse, including inventory management, shipping, receiving, and storage.