Which of the Following Statements Is Incorrect

Multiple Choice

Which of the following statements is incorrect?

A) Financial markets attract funds from investors and channel the funds to corporations.
B) Money markets enable corporations to borrow funds on a short-term basis so that they can support their existing operations.
C) Financial institutions serve solely as intermediaries with the financial markets and never serve as investors.
D) Investors seek to invest their funds in the stock of firms that are presently undervalued and have much potential to improve.