Private Firms That Accept Deposits and Extend Loans Are Known

question 109

Multiple Choice

Private firms that accept deposits and extend loans are known as

• A) bonds.
• B) banks.
• C) stocks.
• D) financials.
• E) securities.

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Definitions:

Retained Earnings

The portion of net earnings not distributed as dividends to shareholders but instead reinvested in the core business or used to pay off debt.

Building Expansion

An increase in the physical size, capacity or significant improvement of a building facility.

Bond Repayments

The process of paying back the principal and interest on bonds, which are forms of long-term debt issued by corporations and governments.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares, rather than cash.