The institutions that facilitate channeling of funds and all the related functions are classified as ___________?

Correct answer: A. financial institutions

  • A. financial institutions
  • B. payable institutions
  • C. non-financial institutions
  • D. derivative institutions

Explanation

Financial institutions channel funds from savers to borrowers and perform related services such as lending, investing, and payment processing. The other labels are not standard categories for these institutions.

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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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