Which of the Following Statements Is Correct

question 115

Multiple Choice

Which of the following statements is correct?

• A)A large,well-known corporation such as Proctor and Gamble would generally use financial intermediation to finance expansion of its factories.
• B)On average,indexed funds outperform managed funds.
• C)Unlike corporate bonds and stocks,checking accounts are a store of value.
• D)Financial intermediaries are institutions through which savers can directly provide funds to borrowers.

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Definitions:

Total Cost

The complete cost of production, including both fixed and variable costs.

Economic Profits

The distinction between the total income of a company and its overall expenses, encompassing both direct and indirect costs.

Actual Expenses

The real or verified costs incurred during a specific period for operations, projects, or activities.

Accounting Costs

The actual expenses and cash outflows that a business incurs, captured in its financial records.