Which of the following statements about the International Finance Corporation is true? Multiple Choice O The decision to assist a venture depends only on potential benefit to the host country's economy. O IFC assumes managerial responsibility and exercises no voting rights. IFC may either buy equity shares or provide long-term loans IFC only provide long-term loans, but not buy equity shares.

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Functions of Financial Institutions

Financial institutions are businesses that are formed to deal with financial and monetary transactions. These organizations primarily accept deposits, advance loans, make investments, and provide foreign exchange services. Financial institutions include, but are not limited to, banks, insurance companies, trust companies, brokerage firms, and investment bankers. Because financial institutions play such an important role in the economy in terms of monetary transactions, regulating their activities has become a requirement for governmental authorities. As a result, the government creates a multitude of laws and regulations to oversee the activities of financial institutions.