Securities Markets Perform a Valuable Economic Function Because They Provide

question 7

Multiple Choice

Securities markets perform a valuable economic function because they provide

• A)an opportunity for investors to make money in a short time.
• B)the principal indicator of the performance of the U.S.economy.
• C)an easy way to transfer corporate securities, thereby reducing risk to investors.
• D)assurance that stock purchasers can get back the purchase price of their stock.

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Definitions:

Exchange Rate

The worth of one currency relative to another, used to determine the amount of one currency that can be swapped for a different one.

Japanese Yen

The official currency of Japan, often symbolized as ¥ and known for being one of the most traded currencies in the foreign exchange market.

U.S. Dollar

The official currency of the United States, widely used as a standard currency in international markets.

Foreign Exchange Market

A global marketplace for exchanging national currencies against one another.