The Functions of a Financial System Include

question 41

Multiple Choice

The functions of a financial system include:

• A)facilitating the flow of funds.
• B)providing means for the transfer and management of risks.
• C)providing the mechanism for the settlement of transactions.
• D)all of the above.

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Definitions:

Real Principal

The actual entity or individual for whom an agent or representative acts, holding the ultimate authority and benefit in transactions or contracts.

Unauthorized Contract

An agreement that lacks the approval or authority from the necessary or legally required parties.

Implied Authority

Authority of an agent that is not explicitly stated but is assumed to be granted in order to perform duties related to a job or position.

Express Authority

Authority expressly given to an agent or representative, defined explicitly in words or writing.