Which of the Following Is NOT True-A Well-Functioning Financial Market

question 27

Multiple Choice

Which of the following is NOT true-a well-functioning financial market:

• A) has a steadily increasing liquidity for most assets.
• B) offers increased ease of restructuring portfolios of assets.
• C) has a quick assimilation of information into asset prices.
• D) has a selection of financial assets with similar timings of cash flow.

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Definitions:

Public Goods

Goods or services that are non-excludable and non-rivalrous, meaning they can be used by everyone without diminishing their availability to others, such as public parks or national defense.

Private Firms

Businesses that are privately owned, not traded publicly on stock exchanges, and typically managed by the owner or shareholders.

Public Good

Without profit motive, a product or service is made available to all societal members, courtesy of either governmental or private benefactors.

Nonrivalry

A characteristic of a good or service whereby its consumption by one individual does not reduce its availability for consumption by others.