The Financial System Performs the Role of Communicating Information by

question 73

Multiple Choice

The financial system performs the role of communicating information by

• A)constantly increasing the liquidity of most assets.
• B)constantly reducing the riskiness of most assets.
• C)incorporating all available information into the prices of financial assets.
• D)providing to investors for a nominal charge all government reports available about a particular company.

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Definitions:

Maintenance Rehearsal

A cognitive process involving the repetition of information to keep it within working memory or to encode it for long-term memory.

Retrograde Amnesia

A condition in which people lose the ability to access memories they had before a brain injury.

New Memories

Information or experiences that have been recently encoded into an individual's memory system.

Anterograde Amnesia

A condition in which people lose the ability to form new memories after experiencing a brain injury.