Which Type of Institution Is Responsible for Providing Liquidity to the Financial

question 1

Multiple Choice

Which type of institution is responsible for providing liquidity to the financial system?

• A) Banks
• B) Stock exchanges
• C) Insurance companies
• D) All of these institutions provide liquidity to the financial system.

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Definitions:

Accounts Payable

A liability account that records amounts a company owes to suppliers for goods and services purchased on credit.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financing activities.

Accounts Receivable

Money owed to a business by its customers for products or services delivered on credit.

Inventory

Refers to the goods and materials a business holds for the purpose of resale or production.