Which of the Following Is Not Typically Considered a Function

question 31

Multiple Choice

Which of the following is not typically considered a function of financial intermediaries?

• A)providing a payment mechanism
• B)investing in real assets
• C)accumulating funds from smaller investors
• D)spreading, or pooling risk among individuals

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Definitions:

Fixed Asset Turnover

A financial ratio that measures how efficiently a company is using its fixed assets to generate sales.

Profit Margin

A financial metric used to evaluate a company's profitability, calculated as net income divided by revenue.

Net Fixed Assets

Assets with a physical form that are held by a company for long-term use, minus depreciation.

Average Collection Period

How long, on average, it takes for a business to get paid by its customers.