Which of the Following Statements,in Regard to the Provision of an Interest

question 18

Multiple Choice

Which of the following statements,in regard to the provision of an interest rate market by a stock exchange,is NOT correct?

• A) It is beneficial to both borrowers and lenders because it can add liquidity.
• B) It can provide ease of access to information about debt securities.
• C) It can reduce investors' transaction costs.
• D) Its main function is to serve as a primary market for debt issues.

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Definitions:

Liquidated Damages

Pre-determined damages agreed upon by the parties involved in a contract, to be paid if one party breaches the contract.

Breach of Warranty

The failure to fulfill the terms of a promise or claim made about the quality or condition of a product or service.

Damages

Financial compensation that is ordered to be paid as a remedy for loss or injury.

Plaintiff

The party initiating a lawsuit, alleging harm caused by the defendant and seeking legal remedy.