FIs Perform Their Intermediary Function in Two Ways

question 35

Multiple Choice

FIs perform their intermediary function in two ways

• A)they specialize as brokers between savers and users.
• B)they serve as asset transformers by purchasing primary securities and issuing secondary securities.
• C)they serve as asset transformers by purchasing secondary securities and issuing primary securities.
• D)they specialize as brokers between savers and users and as asset transformers by purchasing primary securities and issuing secondary securities
• E)They specialize as brokers between savers and users, and they serve as asset transformers by purchasing secondary securities and issuing primary securities.

Understand how cash flows from financing activities are reported.

Calculate and interpret the cash flow on total assets ratio.

Differentiate between adjustments required for the indirect method of preparing the statement of cash flows.

Appreciate the significance of the statement of cash flows in financial analysis and decision-making.