Under the Liability Provisions of Section 11 of the Securities

question 17

Multiple Choice

Under the liability provisions of section 11 of the Securities Act of 1933,auditors may be liable to any purchaser of a security for certifying materially misstated financial statements that are included in the registration statement.Under section 11,auditors usually will not be liable to the purchaser

• A) if auditors can show contributory negligence on the part of the purchaser.
• B) if auditors can demonstrate due diligence.
• C) unless the purchaser can prove privity with auditors.
• D) unless the purchaser can prove scienter on the part of auditors.

Recognize the role and types of nonfinancial customers in foreign exchange markets.

Evaluate the impacts of government monetary policies on currency supply and price stability.

Distinguish between the various mechanisms businesses use to manage exchange rate risks.

Assess the effects of currency exchange rate changes on international businesses.

---

Definitions:

Continually Fluctuating

Refers to constant changes or instability in values, prices, or conditions, often seen in financial markets or economic indicators.

Efficient

Being efficient refers to achieving maximum productivity with minimum wasted effort or expense.

Tremendous Competition

A highly competitive market condition where numerous competitors strive intensely to win market share.

Financial Markets

Places or systems where financial instruments, such as stocks, bonds, and commodities, are traded between investors.