Which of the Following Is NOT Correct with Respect to Financial

question 101

Multiple Choice

Which of the following is NOT correct with respect to financial institutions?

• A) Financial institutions channel funds from those with shortages to those with surplus funds.
• B) Commercial banks, insurance companies, and mutual funds are examples of financial institutions.
• C) Financial institutions reduce monitoring costs and liquidity costs.
• D) Financial institutions reduce price risk.

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Definitions:

Idealistic Thinker

An individual who focuses on the potential or ideal outcomes, often looking at the world and situations with optimism and a belief in improvement.

Broad and Global Issues

encompasses widely encompassing, international concerns that affect multiple countries and populations.

Avoid Details

The approach of focusing on broader objectives or strategies without being bogged down by intricate specifics.

Strategic Opportunism

The ability of an organization to remain focused on long-term objectives while also being flexible enough to take advantage of short-term opportunities.