Which of the Following Statements Is Correct

question 115

Multiple Choice

Which of the following statements is correct?

• A)A large,well-known corporation such as Proctor and Gamble would generally use financial intermediation to finance expansion of its factories.
• B)On average,indexed funds outperform managed funds.
• C)Unlike corporate bonds and stocks,checking accounts are a store of value.
• D)Financial intermediaries are institutions through which savers can directly provide funds to borrowers.

---

Definitions:

Total Assets Turnover Ratio

A measure of a firm's efficiency in using its assets to generate sales, calculated by dividing sales by total assets.

Sales

Sales encompass the transactions where goods or services are exchanged for money, representing the revenue generated by a business.

Total Assets

Total assets represent the sum of all assets owned by a company, including both current and non-current assets.

ROE

A financial ratio expressing the profitability of a firm in relation to stockholders' equity, used to assess how efficiently a company uses investments to generate profit.