Which of the Following Is Not Correct with Respect to Financial

question 96

Multiple Choice

Which of the following is not correct with respect to financial institutions?

• A) Financial institutions channel funds from those with shortages to those with surplus funds.
• B) Commercial banks, insurance companies and mutual funds are examples of financial institutions.
• C) Financial institutions reduce monitoring costs and liquidity costs.
• D) Financial institutions reduce price risk.

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Definitions:

Median

The value separating the higher half from the lower half of a data sample, a population, or a probability distribution.

Set of Data

A collection of data points or values obtained from observations, experiments, or simulations.

Median

The middle value in a data set when it is ordered from smallest to largest, or the average of the two middle values when the data set has an even number of values.

Set of Data

A collection of data points or values gathered for the purpose of analysis.