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:

Full Employment

A situation where all available labor resources are being utilized in the most economically efficient way, with no involuntary unemployment.

Property Rights

Legal rights to possess, use, and dispose of assets including physical, intellectual, and real property.

Mutually Agreeable Transactions

Exchanges between parties that both sides consent to because they are beneficial.

Equal Distribution

The concept of ensuring that resources, wealth, or opportunities are evenly distributed among all members of society.