Which Statement About Markets Is TRUE

question 164

Multiple Choice

Which statement about markets is TRUE?

• A) They always operate efficiently.
• B) They bring buyers and sellers together.
• C) Profits are never an effective discipline on the market.
• D) Markets need to always be controlled by the government.

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Definitions:

Discount

A reduction applied to the nominal price or face value of something for promotional purposes, or to reflect current market values.

Forward Contract

A financial derivative contract obligating the buyer to purchase an asset, or the seller to sell an asset, at a predetermined future date and price.

Exchange Rates

The rate at which one currency can be exchanged for another.

Spot Rate

The current market price used for immediate settlement of transactions involving a foreign currency.