Which of the Below Statements Is FALSE

question 48

Multiple Choice

Which of the below statements is FALSE?

• A) The nature of the liabilities dictates the investment strategy a financial institution will pursue.
• B) The objective of a depository institution is to earn a positive spread between the assets it invests in (what it has sold the money for) and the costs of its funds (what it has purchased the money for).
• C) Life insurance companies and, to a certain extent, property and casualty insurance companies are in the spread business.
• D) Pension funds are in the spread business in that they do not raise funds themselves in the market.

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Definitions:

Liability Purposes

Considerations or reasons relating to legal responsibility, often used in the context of determining who is liable for damages or losses.

Partnership

A legally recognized form of business collaboration where multiple individuals share in management and profit distribution.

Constitutional Protection

Safeguards provided by a constitution to protect individuals' rights and freedoms from infringement.

Unreasonable Searches and Seizures

Any search or seizure by law enforcement without a valid warrant, probable cause, or the individual's consent, typically considered a violation of constitutional rights.