Which of the following statements is correct?
A)A large,well-known corporation such as Proctor and Gamble would generally use financial intermediation to finance expansion of its factories.
B)On average,indexed funds outperform managed funds.
C)Unlike corporate bonds and stocks,checking accounts are a store of value.
D)Financial intermediaries are institutions through which savers can directly provide funds to borrowers.

Question

Quizplus · Accepted Answer

According to multiple studies and research, indexed funds have consistently outperformed managed funds on average due to their lower fees and passive management strategy. A and C are incorrect statements as large corporations like Proctor and Gamble often have access to various financing options like bond issuances and equity offerings, and checking accounts are not typically considered a store of value. D is also incorrect as financial intermediaries are institutions that connect savers and borrowers indirectly through various financial instruments and services.

Which of the Following Statements Is Correct