The institutions classified as depository ones and have loans as their major assets are classified as __________?
Correct answer: A. commercial banks
- A. commercial banks
- B. commercial mortgages
- C. credit mortgages
- D. credit derivativeFinance
Explanation
Commercial banks are depository institutions whose principal assets are loans and advances made to households, businesses, and governments. Mortgages are individual loan types, not the general institutional classification asked for.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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