Which of the Following Is True of Financial Institutions

question 82

Multiple Choice

Which of the following is true of financial institutions?

• A) Financial institutions are the regulators of interest rates and other returns in financial markets.
• B) Financial institutions require an understanding of factors that cause interest rates and other returns in the financial markets to rise and fall.
• C) Financial institutions are accountable and responsible in reporting financial information for publicly traded corporations.
• D) Financial institutions are required by the Sarbanes-Oxley Act to disclose the environment-friendly measures taken by investment corporations.
• E) Financial institutions require public corporations to adopt socially responsible work practices.

---

Definitions:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Expenditure

The total amount of money spent by an individual, firm, or government on goods and services.

Innovation

The process of creating new methods, products, or ideas that bring about significant improvements or changes.

Diffusion

The process by which a new idea, product, or practice spreads through a population or society.