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Which of the Following Is (Are) a Task(s) of the Financial

question 28

Multiple Choice

Which of the following is (are) a task(s) of the financial system?
I. reducing transactions costs
II. reducing risk
III. providing liquidity


Definitions:

Inflation Rate

A measure of the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, often used in the calculation of investment and financing decisions.

PE Ratios

Price-to-Earnings Ratio, a valuation metric for stocks calculated by dividing the market price per share by the earnings per share.

Plowback Ratios

The proportion of earnings retained within a business as retained earnings, rather than being paid out as dividends to investors.

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