If Stock Exchanges Did Not Exist

question 102

Multiple Choice

If stock exchanges did not exist,

• A)the risk to the investor of buying stocks would be much greater.
• B)the economy's resources could be more efficiently allocated among firms.
• C)there would be no organized way for firms to issue stock.
• D)investment banks would no longer play a role in handling stocks.

---

Definitions:

Transduction

The process of converting one form of energy into another, such as converting light waves into neural signals by the sensory organs.

Absolute Threshold

The smallest intensity of a stimulus that can be detected by an organism's sensory systems 50% of the time.

Signal Detection

A theory that aims to quantify the ability to discern between information-bearing patterns and random patterns that distract from the information.

Absolute Threshold

The absolute threshold refers to the minimum intensity of a stimulus that one can detect 50% of the time.