Which of the Following Is NOT Associated with the Purpose

question 6

Multiple Choice

Which of the following is NOT associated with the purpose of regulating financial institutions?

• A) Providing stability of the money supply
• B) Directing flow of funds to priority areas
• C) Maintaining the soundness and stability of the financial system
• D) Lowering the cost of funds

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Definitions:

Time Value

The concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.

Money

A medium of exchange that is widely accepted in transactions for goods and services and the repayment of debts.

Profitability Index

A financial tool used to determine the desirability of an investment or project, calculating the ratio of the present value of future cash flows to the initial investment cost.