Which of the Following Functions Are Performed by Depository Institutions

question 528

Multiple Choice

Which of the following functions are performed by depository institutions?
I. They make long- term loans using short- term deposits, thereby creating liquidity.
II. They efficiently gather funds from a large base of depositors.
III. They concentrate risk.

• A) I only
• B) II only
• C) III only
• D) both I and II

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Definitions:

Incumbent Management

The current team operating and managing a company, particularly during an attempt of take-over or acquisition.

Management Buyout

A transaction where a company's management team purchases the assets and operations of the business they manage.

Proxy Contest

is a situation where two or more factions within a company's shareholders compete for votes in order to control decisions made by the board of directors.

Take The Firm Private

The process by which a publicly traded company is transformed into a privately owned entity, usually through a buyout.