One Characteristic of a Financial Intermediary Is That

question 55

Multiple Choice

One characteristic of a financial intermediary is that

• A) it acts as a broker in the sale of stocks and bonds.
• B) it intermediates between workers and firms.
• C) it transforms assets.
• D) it cannot processes information.
• E) it is a lending institution only.

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Definitions:

Depreciated Historical Cost

The original cost of an asset minus accumulated depreciation, representing its value over time for accounting purposes.

Residual Value Guarantee

A promise that at the end of a lease, the asset being leased will have a certain value, often used in finance and leasing agreements.

Minimum Lease Payments

The total of all lease payments that the lessee is required to make over the lease term, excluding executory costs.

Present Value

The present value of a future amount of money or series of cash flows, calculated using a designated rate of return.