Which of the Following Is Not a Characteristic of Financial

question 20

Multiple Choice

Which of the following is not a characteristic of financial institutions?

• A) Their profit is generally made up of bank charges
• B) They facilitate the flow of funds from entities with a cash surplus to those with a cash deficit
• C) Their profit is generally the difference between the interest rates paid to creditors and that charged to debtors
• D) Their assets are primarily cash or claims to cash

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Definitions:

Scientific Methods

A systematic and logical approach to acquiring knowledge that involves observation, experimentation, and data analysis.

Causal Attribution

The process of assigning causes or reasons to behaviors and events, explaining why things happen or why certain actions were taken.

Covariation Model

A psychological theory proposing that people determine the cause of an event based on the pattern of covariation between the event and the potential causes across time and circumstances.

Discreteness

Pertains to the characteristic of being separate and distinct in nature, often referring to the classification of data or phenomena into distinct categories.