Which of the following statements is false?
A)Finance studies how the financial system coordinates and channels the flows of funds from net lenders to net borrowers
B)Household saving may be used for investment in new housing or to acquire financial assets.
C)Business saving may be used for investment in capital and inventories or to acquire financial assets.
D)Financial instruments are financial assets to the issuer of the instrument and financial liabilities to the holder.

Question

Quizplus · Accepted Answer

Financial instruments are considered financial assets to the holder and financial liabilities to the issuer, not the other way around. This is because the issuer is obligated to return the borrowed funds or pay returns on them, making it a liability for the issuer and an asset for the holder.

Which of the Following Statements Is False