Well-Functioning Financial Markets

question 108

Multiple Choice

Well-functioning financial markets

• A) cause inflation.
• B) eliminate the need for indirect finance.
• C) cause financial crises.
• D) produce an efficient allocation of capital.

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Definitions:

False and Deceptive

Activities or practices that intentionally mislead consumers or misrepresent facts for gain.

Bill of Rights

A collective name for the first ten amendments to the United States Constitution, guaranteeing such rights as the freedoms of speech, assembly, and worship.

Inelastic Demand

A situation in which the demand for a product does not significantly change in response to a change in price.

Necessity

An essential requirement or need for survival or to maintain a certain standard of living.