Which of the Following Is NOT Correct with Respect to Financial

question 101

Multiple Choice

Which of the following is NOT correct with respect to financial institutions?

• A) Financial institutions channel funds from those with shortages to those with surplus funds.
• B) Commercial banks, insurance companies, and mutual funds are examples of financial institutions.
• C) Financial institutions reduce monitoring costs and liquidity costs.
• D) Financial institutions reduce price risk.

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Definitions:

Behavioral Contrast

A phenomenon in which the rate of a behavior varies inversely with an alteration in the conditions of reinforcement for another behavior.

Higher-order Conditioning

A process in classical conditioning by which a stimulus that has become a conditioned stimulus can be used to condition a new stimulus.

Stimulus Presentations

Stimulus presentations involve the exposure of an individual to a specific stimulus or series of stimuli, often used in psychological experiments to observe responses or behaviors.

Stimulus Characteristics

The specific attributes or features of a stimulus that can affect how it is perceived and processed by an individual.