Financial Markets Provide Three Economic Functions

question 28

Multiple Choice

Financial markets provide three economic functions. Which of the below is NOT one of these?

• A) The interactions of buyers and sellers in a financial market determine the price of the traded asset.
• B) Financial markets provide a mechanism for an investor to sell a financial asset.
• C) Financial markets increases the cost of transacting.
• D) The interactions of buyers and sellers in a financial market determine the required return on a financial asset.

Appreciate the importance of soft skills, including problem-solving and ethical decision-making.

Recognize the influence of culture on business practices and communication styles.

Identify and improve nonverbal communication skills.

Understand and describe the concepts of high-context and low-context cultures.

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Definitions:

Advantages

The beneficial factors or positive attributes that contribute to the success or competitiveness of something.

Accounting Standards Board

An organization responsible for establishing and improving financial accounting and reporting standards to ensure clarity, consistency, and comparability of financial statements.

International Accounting Standards Board

An independent, private-sector body that develops and approves International Financial Reporting Standards (IFRSs).

IFRS

International Financial Reporting Standards are a set of accounting rules and standards developed by the International Accounting Standards Board (IASB) that guide the preparation of financial statements globally.