Answer
The answer is D. Engaging in high-risk speculative trading
Explanation
This question asks about the common features of financial institutions. Financial institutions typically share characteristics that facilitate their core functions of managing and transferring money.
Here are further explanations.
- Option A: Accepting deposits: This is a fundamental function of many financial institutions, such as banks and credit unions. They attract funds from individuals and businesses, offering various deposit accounts.
- Option B: Providing loans: Financial institutions lend money to individuals and businesses, charging interest as a source of revenue. This is a core service offered by banks, credit unions, and other lending institutions.
- Option C: Facilitating payments: This involves processing transactions, such as transferring funds between accounts, issuing checks, and processing electronic payments. This is a crucial role for financial institutions in the modern economy.
- Option D: Engaging in high-risk speculative trading: While some financial institutions might engage in trading activities, it’s not a defining or common feature. High-risk speculative trading is more associated with specific investment firms and is not a core function of all financial institutions. Many focus on stability and risk mitigation for their depositors and borrowers.