The Distinguishing Feature of a Well-Functioning Financial Market Is the

question 8

Multiple Choice

The distinguishing feature of a well-functioning financial market is the

• A)continual increase in the liquidity of most assets.
• B)continual reduction in the riskiness of most assets.
• C)increased ease of converting common stocks into bonds.
• D)incorporation of available information into asset prices.

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Definitions:

Nucleus

A membrane-bound organelle found in eukaryotic cells, containing most of the cell's genetic material.

Chromosome

The structure that transmits the genetic material from one generation to the next; composed of condensed chromatin; each species has a particular number of chromosomes that is passed on to the next generation.

Gene

A unit of heredity that is transferred from a parent to offspring and is held to determine some characteristic of the offspring.

Enzyme

Biological molecules that significantly speed up the rate of virtually all of the chemical reactions that take place within cells.