Statement I: Financial Intermediaries Repackage the Flow of Deposits,insurance Premiums,and

question 94

Multiple Choice

Statement I: Financial intermediaries repackage the flow of deposits,insurance premiums,and pension contributions into larger chunks that are lent out.
Statement II: Banks are one of several types of financial intermediaries.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

---

Definitions:

Salvage Value

The projected value of an asset when it reaches the end of its functional lifespan.

Profit Comparisons

The process of analyzing changes in profit metrics over time or against industry benchmarks to gauge financial health or performance.

Economic Differences

The variations in economic conditions and outcomes among different regions, populations, or time periods, often studied to improve economic policies.

Salvage Value Proportions

Estimated residual value of an asset after its useful life, represented as a portion of its original cost.