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Which of the Following Is NOT Correct with Respect to Financial

Question 101

Multiple Choice

Which of the following is NOT correct with respect to financial institutions?


A) Financial institutions channel funds from those with shortages to those with surplus funds.
B) Commercial banks, insurance companies, and mutual funds are examples of financial institutions.
C) Financial institutions reduce monitoring costs and liquidity costs.
D) Financial institutions reduce price risk.

Correct Answer:

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