A partnership sourcing for funds to expand its business would approach _______?

A. a central bank
B. a money market
C. an insurance
D. a stock exchange

Correct Answer:

Option B – a money market

Explanation

Money market can be defined as a market for short-term loans. The market consists of institutions or individuals who either have money to lend or wish to borrow on a short-term basis. The central bank is the sole authority in the banking industry and acts as banker to the government and commercial banks.

The stock market is an instrument for raising fund for limited liability companies which have shares of the company to give out in exchange for fund. Insurance companies are financial institutions that are concerned with insurance. The insurance company indemnifies the insured against loss which he may suffer in the future upon payment of a premium.