Which of the Following Is NOT Correct with Respect to Financial

question 101

Multiple Choice

Which of the following is NOT correct with respect to financial institutions?

• A) Financial institutions channel funds from those with shortages to those with surplus funds.
• B) Commercial banks, insurance companies, and mutual funds are examples of financial institutions.
• C) Financial institutions reduce monitoring costs and liquidity costs.
• D) Financial institutions reduce price risk.

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Definitions:

Internalized

Refers to the process of adopting the norms, attitudes, or behaviors of others as one's own, often unconsciously.

Group Norms

Accepted behavior patterns or standards within a group that guide members' actions and interactions.

Anticipatory Socialization

The process of learning and adopting the norms, values, and behaviors necessary for a future role or environment before entering it.

Uncertainty Reduction Theory

Newcomers are motivated to reduce their uncertainty so that the work environment becomes more predictable and understandable.