Which Type of Financial Institution Generally Does Not Accept Deposits

question 25

Multiple Choice

Which type of financial institution generally does not accept deposits but does underwrite stock offerings?

• A) Insurance company
• B) Mutual fund
• C) Commercial bank
• D) Investment bank

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Definitions:

Operating Cycle

The average time period between the acquisition of inventory by a business and the receipt of cash from the sale of that inventory.

Acquisition Of Inventory

The process of obtaining goods and materials for a company's operations, which could be for immediate use or to keep as stock for future sale or production.

Marketable Securities

Financial instruments that can easily be converted into cash, typically with high liquidity and short maturity periods.

Short-Term Financing

Borrowing options intended for use over a short period, often to support the day-to-day operations of a business.