The services provided by financial institutions as providing financing to any specific sector of economy such as real estate business are classified as _____________?
Correct answer: D. credit allocationTry Operations Software
- A. business allocation
- B. sector allocation
- C. economic allocation
- D. credit allocationTry Operations Software
Explanation
Credit allocation refers to directing financing toward particular sectors, such as real estate, agriculture, or industry. It is more precise here than the broader terms business or economic allocation.
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About Business Finance
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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