Investment securities are expected to help stabilize a financial institution's income.

Question

Quizplus · Accepted Answer

Investment securities such as stocks, bonds, and mutual funds can generate income for financial institutions through dividends, interest payments, and capital gains. By diversifying their investments, financial institutions can potentially mitigate the impact of fluctuations in other areas of their business, helping to stabilize their income.

Investment Securities Are Expected to Help Stabilize a Financial Institution's