Which of the Following Functions Does Not Require Financial Markets

question 56

Multiple Choice

Which of the following functions does not require financial markets?

• A) Transporting of cash across time
• B) Provision of liquidity
• C) Risk reduction by investment in diversified portfolios
• D) Provision of trade information

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Definitions:

Unaccepted Draft

A written order to pay a specified amount that has not been agreed to or signed by the party expected to pay.

Entitled To Enforce

A legal phrase indicating that a person or entity has the right to enforce a contract or legal instrument.

Promissory Note

A promissory note is a financial instrument in which one party (the issuer) promises in writing to pay a determinable sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms.

Proper Presentment

The formal process of presenting a document, such as a check or draft, to the appropriate party for payment or acceptance.