Which of These Does NOT Perform Vital Functions to Securities

question 10

Multiple Choice

Which of these does NOT perform vital functions to securities markets of all sorts by channelling funds from those with surplus funds to those with shortages of funds?

• A) commercial banks
• B) secondary markets
• C) insurance companies
• D) mutual funds

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Definitions:

Merchandising Income Statement

A financial statement that shows the gross profit, operating expenses, and net income of a company that buys and sells goods.

Administrative Expenses

Administrative Expenses are costs related to the general operation of a business, including expenses such as office supplies, salaries of administrative personnel, and rent.

Operating Income

Income generated from the normal business operations of a company, excluding expenses such as interest and taxes.

Purchases Returns and Allowances

Purchases Returns and Allowances is an account that tracks the reduction in costs due to returned goods or provided allowances after the purchase has been made.