Which of the Following Statements Is the Most Accurate

question 6

Multiple Choice

Which of the following statements is the most accurate?

• A)Stock markets facilitate the flow of funds from savings-deficit units to savings-surplus units.
• B)Stock markets facilitate the trading of shares of all companies.
• C)A portfolio consisting of all shares traded on the Australian Stock Exchange would represent the market portfolio.
• D)Stock markets provide liquidity for share trading.

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Definitions:

Medicare Tax

A federal tax that funds the Medicare program, deducted from the earnings of employees and matched by employers.

Unemployment Taxes

Taxes paid by employers to fund unemployment insurance programs, aiding workers who have lost their jobs.

Salaries Payable

An account containing the total amount of salary expense that has been incurred by a company but has not yet been paid out to employees.

Employer Payroll Tax Expense

Taxes paid by employers based on the salary and wages of employees, including social security and Medicare taxes in the United States, among others.