Which of the Following Statements Is True of the Use

question 17

Multiple Choice

Which of the following statements is true of the use of information technology in financial services?

• A) Information technology prevents the spread of financial crises.
• B) Financial services are an information-intensive industry.
• C) Financial services do not use decisions making systems.
• D) It does not require to process large volumes of information.

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Definitions:

Forward Contract

A financial agreement between two parties to buy or sell an asset at a specified future time at a price agreed upon today, not traded on an exchange.

Purchase Order

A formal document issued by a buyer to a seller, authorizing the purchase of goods or services as specified at agreed-upon terms.

Fair-Value Hedge

A hedge that protects against changes in the fair value of an asset, liability, or firm commitment that is attributable to a particular risk.

Forward Contract

A derivative financial instrument where two parties agree to buy or sell an asset at a predetermined future date and price.