Which Statement Best Defines Financial Intermediaries

question 164

Multiple Choice

Which statement best defines financial intermediaries?

• A) They are the same as financial markets.
• B) They are individuals who make a profit by buying a stock low and selling it high.
• C) They are a more general name for financial assets, such as stocks, bonds, and chequing accounts.
• D) They are financial institutions through which savers can indirectly provide funds to borrowers.

Understand the concept of uncontrollable costs within managerial accounting.

Grasp the definition and application of the split-off point in joint cost allocation.

Comprehend the structure and purpose of responsibility accounting performance reports.

Calculate the allocation of joint costs using the value basis method.

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Definitions:

Landslide

The sudden and rapid movement of a large amount of earth material, such as rock and soil, downslope due to gravity.

Unconformity

A surface of erosion or non-deposition that separates younger strata from older rocks, indicating a gap in the geologic record.

Conglomerate

A conglomerate is a coarse-grained sedimentary rock composed of rounded fragments larger than 2 mm in diameter, embedded in a matrix of finer particles and cement.

Shale Layer

A shale layer is a sedimentary rock formation characterized by fine-grained clay particles, often found in various geological strata and known for being a source of oil and natural gas through hydraulic fracturing.