Which of the Following Statements Is NOT a Feature of Financial

question 84

Multiple Choice

Which of the following statements is NOT a feature of financial markets?

• A) Financial markets generally provide borrowers with lower cost funds than through a financial intermediary.
• B) Funds are channelled directly from savers to borrowers.
• C) Contractual agreements are issued between savers and borrowers.
• D) Financial markets generally deal only with the purchase and sale of government securities.

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Definitions:

Hedge Fund Fees

Charges associated with investing in a hedge fund, often including a management fee and a performance fee.

Equity Market

A financial market where shares of companies are issued and traded, also known as the stock market.

World Equity Market

A global marketplace where shares of companies from different countries are bought and sold.

Correlations

A statistical measure that describes the extent to which two variables change together, indicating the strength and direction of their relationship.