The objective of a ________ is to earn a positive spread between the assets it invests in (what it has sold the money for) and the costs of its funds (what it has purchased the money for).

Question

Quizplus · Accepted Answer

The objective described in the question is most closely associated with depository institutions, such as banks and credit unions. These institutions take in funds from deposits and then lend those funds out at a higher interest rate in order to earn a profit. A limited partnership, corporation, or life insurance company may also invest in assets, but the objective described in the question is not their primary focus.

The Objective of a ________ Is to Earn a Positive