The Standardization of Many FI Products Is Evidence of the Inefficient

question 50

True/False

The standardization of many FI products is evidence of the inefficient institutionalization by financial markets and the mechanisms through which these products trade.

---

Definitions:

Credit Policies

Guidelines that a company follows to determine the creditworthiness of customers, terms of credit, collection procedures, and how much credit to extend.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used, but not yet paid for.

Cash-flow Management

The process of monitoring, analyzing, and optimizing the net amount of cash receipts minus cash expenses.

Net Profit Margin

A financial metric that measures how much of every dollar earned in revenue is translated into profit after all expenses are deducted.