Which Need Is the Primary Influence on the Demand for Financial

question 3

Multiple Choice

Which need is the primary influence on the demand for financial information?

• A)the need for managers to make decisions that improve organizational effectiveness and efficiency
• B)the need for society to maintain an equilibrium of good and services
• C)the need for user groups to make decisions regarding resource allocation
• D)the need for regulators to control improper business behavior

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Definitions:

Discount Rate

The interest rate the Fed charges banks that borrow reserves

Depository Institutions

Financial organizations, such as banks and credit unions, that accept deposits from individuals and provide loans and other financial services.

Borrow

Obtaining funds from another party with the promise to return the principal amount along with agreed-upon interest or dividends.

Discount Rate

The rate at which financial institutions can borrow funds from the central bank, often used as a monetary policy tool.