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:

Automatic Extension

An automatic extension grants taxpayers additional time to file their tax returns without the need for an explanation.

Return

The document filed with the IRS that reports income, expenses, and other pertinent tax information. Returns are required by law to be filed annually for an individual or business with reportable income.

Earnings and Profits

A measure used for tax purposes to determine a corporation's ability to pay dividends to its shareholders out of its net assets.

Distributions

Payments made from a fund or account to its beneficiaries, such as dividends or withdrawals.