What Is the Primary Function of Finance Companies

question 33

Multiple Choice

What is the primary function of finance companies?

• A)Protect individuals and corporations from adverse events.
• B)Make loans to both individuals and corporations.
• C)Extend loans to banks and other financial institutions.
• D)Pool the financial resources of individuals and companies and invest in diversified portfolios of assets.

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Definitions:

Future Exchange Rate

The anticipated value of one currency in terms of another currency at a future date, often used in hedging and trading strategies.

Indifferent

A state of having no preference or being neutral between two or more choices in decision-making scenarios.

Equity Market

The marketplace where shares of companies are bought and sold, facilitating capital raising for listed companies and investment opportunities for buyers.

World Equity

Investments in equities or stocks from companies all around the globe, aiming to achieve diversified global exposure.