Which of the Following Is NOT an Important Reason Why

question 16

Multiple Choice

Which of the following is NOT an important reason why governments around the world regulate financial markets?

• A)To ensure that all participants in the financial system have access to information
• B)To reduce the cost to governments of borrowing funds
• C)To maintain financial stability
• D)To advance economic policy by interacting with the financial system

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Definitions:

Portfolio

A portfolio containing various financial instruments such as stocks, bonds, commodities, plus cash and cash equivalents, in addition to closed-end funds and ETFs.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, commonly used to quantify the amount of variation.

Stock

A kind of financial instrument that indicates possession in a company and symbolizes a right to a portion of the firm's assets and profits.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher than average market volatility.