The Financial System Is Made Up Of

question 121

Multiple Choice

The financial system is made up of:

• A) institutions that bring together savers, borrowers, investors, and insurers in a set of interconnected markets where people trade financial products.
• B) borrowers and savers using banks to complete transactions and make investments.
• C) institutions such as the World Bank, International Monetary Fund, Federal Reserve, and World Trade Organization.
• D) the government and its central bank.

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Definitions:

Implied Authority

Authority of an agent that is not explicitly stated but is assumed to be granted in order to perform acts necessary to fulfill the purpose of an agency relationship.

Winding Up

The process of concluding a company’s operations, settling its liabilities, and distributing remaining assets to shareholders.

Novation

The act of replacing an existing contract with a new one, where a new party takes over rights and obligations that were originally held by one of the initial parties.

RUPA

The Revised Uniform Partnership Act, which is a set of laws intended to govern the operations of partnerships in the United States.