Statement I: Virtually All Savings Is Channeled to Borrowers Through

question 33

Multiple Choice

Statement I: Virtually all savings is channeled to borrowers through financial intermediaries.
Statement II: Pension funds are a form of financial intermediary.

• 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.

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Definitions:

Land

Real estate or property, minus buildings and equipment, that is considered a fixed asset.

Buildings

Assets categorized under real estate property that are used for business operations or rented out for revenue generation.

Depreciated

The reduction in the recorded cost of a fixed asset in a manner that allocates its cost over the useful life of the asset.

Land Account

An account on the balance sheet that shows the cost of land owned by a company, not depreciated since land has an unlimited useful life.