Which of the Following Statements Is FALSE

question 12

Multiple Choice

Which of the following statements is FALSE?

• A) Because of the prominent role played by financial markets in economies, governments have long deemed it necessary to regulate certain aspects of these markets.
• B) In their regulatory capacities, governments have had little influence on the development and evolution of financial markets and institutions.
• C) It is important to realize that governments, markets, and institutions tend to behave interactively and to affect one another's actions in certain ways.
• D) A sense of how the government can affect a market and its participants is important to an understanding of the numerous markets and securities.

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Definitions:

Short-form Merger

A type of merger that allows a parent company to merge with its subsidiary without the approval of the subsidiary's shareholders.

Dissolution

The process of formally ending or dissolving a company or contractual relationship.

Free-Writing Prospectus

A written, electronic, or graphic communication associated with the offer to sell a security and used during the waiting period to supplement other information about the security.

Securities And Exchange Commission

A U.S. federal agency responsible for enforcing federal securities laws, proposing securities rules, and regulating the securities industry, stock and options exchanges, and other related activities and organizations.