Which of the Following Statements Is NOT a Feature of Financial

question 84

Multiple Choice

Which of the following statements is NOT a feature of financial markets?

• A) Financial markets generally provide borrowers with lower cost funds than through a financial intermediary.
• B) Funds are channelled directly from savers to borrowers.
• C) Contractual agreements are issued between savers and borrowers.
• D) Financial markets generally deal only with the purchase and sale of government securities.

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Definitions:

Debit Postings

Entries made on the left side of an account, increasing the balance of assets and expenses or decreasing liabilities and equity.

Credit Postings

Entries made on the credit side of an account ledger, indicating an increase in liability, revenue, or equity accounts, or a decrease in asset or expense accounts.

Liability Account

An accounting record used to track obligations the company owes to others, such as loans, leases, or accounts payable.

Expense Account

An account in which businesses record and track expenditures related to specific activities, such as travel or entertainment, for accounting purposes.