Which of the Following Functions Is NOT Performed by Commercial

question 201

Multiple Choice

Which of the following functions is NOT performed by commercial banks?

• A) They provide a safe opportunity for savers to earn interest on their savings.
• B) They direct money to its highest valued uses.
• C) They help form the bridge between savers and investors.
• D) They organize initial public offerings for firms.

---

Definitions:

Discounted Value

The present value of a future amount of money or stream of cash flows given a specified rate of return.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid by the borrower to the lender for the use of their funds.

Future Consumption

The concept of saving resources or income in the present in order to consume or utilize in the future, reflecting economic planning and saving behavior.

Present Value

The current worth of a future sum of money or flow of cash flows given a specified rate of return.