When an FI Functions as a Broker, They Are Selling

question 33

True/False

When an FI functions as a broker, they are selling a financial asset that they have created and will continue to hold on their balance sheet.

---

Definitions:

Short-Term Loan

A loan scheduled to be repaid in less than a year, often used for immediate cash flow needs.

Annual Net Cash Inflow

The total amount of cash that a business generates in a year, after all expenses and taxes are subtracted from total cash inflows.

Accounts Payable Balance

The total amount of money owed by a company to its creditors or suppliers at a specific point in time.

Sales for Quarter

The total revenue generated from sales activities within a specific three-month period of the fiscal year, used to analyze the company's performance and growth.