Which of the Following Statements Best Describes Financial Markets

question 18

Multiple Choice

Which of the following statements best describes financial markets?

• A) Financial markets lower the cost and increase the speed of buying and selling financial instruments.
• B) Financial markets increase the speed of buying and selling, but they also increase the cost since people are earning fees for these transactions.
• C) Financial markets are a good example of unregulated markets.
• D) Financial markets today offer fewer instruments than they did in the past.

---

Definitions:

Sales Volume

The total number of units of product sold in a particular period.

Contribution Format

An income statement layout that segregates fixed costs from variable costs, thus highlighting the contribution margin.

Net Operating Income

The total profit of a company after operating expenses are subtracted from gross profit but before taxes and interest costs are deducted.

Sold Units

The total number of units of a product that have been sold within a specific time period.