The Key Reason for the Existence of Markets of Financial

question 29

Multiple Choice

The key reason for the existence of markets of financial assets is:

• A) that holders of shares generally want to exchange them for bonds and other financial instruments.
• B) the high expenditure for many individuals and businesses.
• C) that the lack of money in an economy makes trade in financial assets necessary.
• D) the refusal of most modern governments to print money on demand.

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Definitions:

Positive Slope

A line or curve on a graph that moves upwards from left to right, indicating a positive relationship between two variables.

Variable on the Vertical Axis

In a graph, the variable that is represented on the vertical (y) axis, which is typically the dependent variable in an analysis.

Variable on the Horizontal Axis

Represents independent variables in graphical representations, typically plotted along the x-axis.

Slope

In mathematics, it refers to the measure of the steepness, incline, or grade of a line, often calculated as the ratio of the vertical change to the horizontal change between two points on the line.