All of the Following Are Benefits That Financial Institutions Provide

question 49

Multiple Choice

All of the following are benefits that financial institutions provide to our economy EXCEPT

• A) increased liquidity.
• B) increased monitoring.
• C) increased dollar amount of funds flowing from suppliers to fund users.
• D) increased price risk.

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Definitions:

Sales

The transactions involving the exchange of goods or services for money, representing the major source of revenue for a business.

Merchandise

Goods to be bought and sold in the course of business, typically in a retail or wholesale setting.

Inventory Purchases

Transactions involving buying goods to be sold in the normal course of business, typically counted as a current asset.

Cost of Goods Sold

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of the goods sold by a company, including material and labor costs.