When a Financial Institution Accepts Funds from Savers and Pools

question 242

Multiple Choice

When a financial institution accepts funds from savers and pools this money into a portfolio of diversified financial instruments, it is

• A) reducing information costs.
• B) reducing transaction costs.
• C) spreading risk.
• D) preventing fraud.

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Definitions:

Crowd Crystals

A metaphorical term describing the nucleus around which larger groups form, often based on shared interests or goals.

Queue

A line or sequence of people or vehicles awaiting their turn to access services or proceed.

Structure

The arrangement or organization of constituent parts; in social sciences, it may refer to the arrangement of and relationships between different aspects of society or an organization.

Case Study

A detailed examination of a particular case (individual, organization, event) within its real-world context.