What Is the Primary Function of Finance Companies

question 73

Multiple Choice

What is the primary function of finance companies?

• A)Protect individuals and corporations from adverse events.
• B)Make loans to both individuals and corporations.
• C)Extend loans to banks and other financial institutions.
• D)Pool the financial resources of individuals and companies and invest in diversified portfolios of assets.
• E)Assist in the trading of securities in the secondary markets.

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Definitions:

Long-Term Fundraising

Long-term fundraising involves strategies and efforts planned over an extended period to secure resources or capital for an organization or project's future needs.

Build Institutions

The process of establishing and developing structures or organizations that play a foundational role in society, such as schools, banks, and legal systems.

Philanthropy

The desire to promote the welfare of others, expressed especially by the generous donation of money to good causes.

Charity

An organization set up to provide help and raise money for those in need, focusing on public benefit.