What Is the Key Reason Why Financial Institutions Can Transform

question 44

Multiple Choice

What is the key reason why financial institutions can transform assets and encourage transfer of funds?

• A) They can work individually with savers' funds.
• B) They can use their own funds for investment.
• C) They can invest the dividends.
• D) They have economies of scale.

---

Definitions:

Selling Price

The amount of money charged for a product or service, or the sum for which something is offered for sale.

Profit Increase

A financial metric indicating an augmentation in a company's earnings over a specific period.

Unit Sales Price

The amount of money charged for a single unit of a product or service, determining the revenue per unit sold.

Unit Variable Cost

The cost that varies directly with the production output, altering with the volume of production.