Which One of the Following Is a Not Role of the Financial

question 17

Multiple Choice

Which one of the following is a not role of the financial markets?

• A)Consumption timing
• B)Information
• C)Separation of ownership and control
• D)Increasing wealth of the economy

---

Definitions:

Digital Option

A financial instrument that provides a fixed return if the market price is above (for a call) or below (for a put) a certain level at expiration.

Bull Money Spread

A type of options strategy that is used when an investor expects a moderate rise in the price of the underlying asset.

Calls

Calls are options contracts giving the holder the right, but not the obligation, to buy a specified amount of an underlying security at a predetermined price within a specified time frame.

Option Quotes

Information about the price of an option contract, including its bid and ask prices, and sometimes the volume and open interest.