Multiple Choice
Financial assets have two principal economic functions. Which of the below is ONE of these?
A) A principal economic function is to transfer funds from those who have surplus funds to borrow to those who need funds to invest in intangible assets.
B) A principal economic function is to transfer funds in such a way as to redistribute the avoidable risk associated with the cash flow generated by intangible assets among those seeking and those providing the funds.
C) A principal economic function is to transfer funds in such a way as to redistribute the unavoidable risk associated with the cash flow generated by tangible assets among those seeking and those providing the funds.
D) A principal economic function is to transfer funds from those who have surplus funds to invest to those who need funds to invest in intangible assets.
Correct Answer:
Verified
Correct Answer:
Verified
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