Which of the following statements is correct?
A)A large,well-known corporation such as Intel generally would use financial intermediation to finance expansion of its facilities.
B)On average,managed funds outperform indexed funds.
C)Unlike corporate bonds and stocks,checking accounts are a medium of exchange.
D)A mutual fund is a financial market.

Question

Quizplus · Accepted Answer

Checking accounts are a medium of exchange, meaning they are used to facilitate transactions between parties, while corporate bonds and stocks are investments and financial instruments used for raising capital. A large corporation like Intel would likely use internal sources of funding, rather than financial intermediation. The statement that managed funds outperform indexed funds is a disputed claim, and the idea that a mutual fund is a financial market is incorrect, as a mutual fund is a type of investment vehicle that uses pooled investor capital to purchase securities.

Which of the Following Statements Is Correct