Which of the Following Statements Is True

question 71

Multiple Choice

Which of the following statements is true?

• A)In equity markets, delivery and cash settlement normally occur two business days after the spot agreement.
• B)In equity markets, delivery and cash settlement normally occur three business days after the spot agreement.
• C)In equity markets, delivery and cash settlement normally occur four business days after the spot agreement.
• D)In equity markets, delivery and cash settlement normally occur five business days after the spot agreement.

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Definitions:

Quotas

Quotas are limits set by a government on the amount of a particular commodity that can be imported or produced domestically in a certain period, used as a means to regulate trade and support local industries.

Comparative Advantage

The ability of an entity (could be a person, company, or country) to produce a good or service at a lower opportunity cost than another.

Domestic Prices

Relates to the cost of goods and services within a country's borders, which can be influenced by factors such as supply and demand, taxation, and government policies.

Euros

The official currency of the Eurozone, which is used by 19 of the 27 European Union member countries.