Financial Institutions

question 17

Multiple Choice

Financial institutions:

• A)provide access to the financial markets.
• B)are also known as financial intermediaries.
• C)include banks, insurance companies, securities firms, and pension funds.
• D)include all of the above.

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Definitions:

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation, representing assets minus liabilities.

Debt

An amount of money borrowed by one party from another, often used to make large purchases that they could not afford under normal circumstances.

Riskiness

A measure of the uncertainty associated with the returns on an investment, indicating the potential for loss.

Dividend Growth Rate

Dividend Growth Rate is the annualized percentage rate of growth of a company's dividend payments, indicating the steady increase in dividends paid out to shareholders over time.