Which of the Following Is Not a Reason Why Depository

question 85

Multiple Choice

Which of the following is not a reason why depository financial institutions are popular?

• A) They offer deposit accounts that can accommodate the amount and liquidity characteristics desired by most surplus units.
• B) They repackage funds received from deposits to provide loans of the size and maturity desired by deficit units.
• C) They accept the risk on loans provided.
• D) They use their information resources to act as a broker, executing securities transactions between two parties.
• E) They have more expertise than individual surplus units in evaluating the creditworthiness of deficit units.

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Definitions:

Currently Selling

Refers to goods or products that are actively being marketed and sold by a company.

Foreseeable Future

A term used to describe a period of time in which events are predicted or expected to occur.

Market Return

The total return on an investment, reflecting both capital gains and dividends, over a specific period.

Required Return

The return a investor expects to earn on an investment, taking into account the risk associated with it.