BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
are the organized financial intermediaries and the forums that promote the cycle of money.
|
|
|
compose the set of financial activities that support the operations of a business.
|
|
|
are the activities centered on the purchase and sale of financial assets.
|
|
|
are concerned only with the addition of a multinational element to all finance activities.
|
Detailed explanation-1: -Financial institutions and markets are the organized financial intermediaries and the forums that promote the cycle of money.
Detailed explanation-2: -A financial intermediary refers to an institution that acts as a middleman between two parties in order to facilitate a financial transaction. The institutions that are commonly referred to as financial intermediaries include commercial banks, investment banks, mutual funds, and pension funds.
Detailed explanation-3: -Financial intermediaries serve as middlemen for financial transactions, generally between banks or funds. These intermediaries help create efficient markets and lower the cost of doing business. Intermediaries can provide leasing or factoring services, but do not accept deposits from the public.
Detailed explanation-4: -Financial institutions are essential because they provide a marketplace for money and assets so that capital can be efficiently allocated to where it is most useful. For example, a bank takes in customer deposits and lends the money to borrowers.