Which of the following statements about financial institutions is true?: An investment company’s primary source of...
Which of the following statements about financial institutions is true?:
| An investment company’s primary source of funds is loans and its primary use of funds is securities |
| An investment company’s primary source of funds is shares and its primary use of funds is loans |
| Stock funds or equity funds involve more risk than money market or bond funds. |
| An insurance company’s primary source of funds is deposits and its primary use of funds is loans |
| A commercial bank’s primary source of funds is debt and its primary use of funds is securities |
Homework Answers
Stock funds or equity funds involve more risk than money market or bond funds.:
Equity funds have more risk and return as well compared to Loan or bond fund as the equity is actual owners of the company and the others are just money lenders.. they dont have ownership in company,
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