Which of the Following Functions Does Not Require Financial Markets

question 56

Multiple Choice

Which of the following functions does not require financial markets?

• A) Transporting of cash across time
• B) Provision of liquidity
• C) Risk reduction by investment in diversified portfolios
• D) Provision of trade information

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Definitions:

Long-run Average Total Cost

The average cost per unit of output over the long term, where all inputs are considered variable, allowing firms to adjust all factors of production.

Plant Sizes

The physical capacity or scale of a manufacturing facility, which can influence production volume, efficiency, and cost.

Per-unit Cost

The cost associated with producing or acquiring one unit of a product.

Factory Size

The physical dimensions or capacity of a manufacturing facility, which may influence its output, efficiency, and employment levels.