Which of the Following Functions Does Not Require Financial Markets

question 65

Multiple Choice

Which of the following functions does not require financial markets?

• A) Retention of cash by corporations
• B) Provision of liquidity
• C) Risk reduction by investment in diversified portfolios
• D) Provision of pricing information

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Definitions:

Monopoly Structure

A market structure characterized by a single seller that controls the whole industry, leading to a lack of competition and high prices for consumers.

Relevant Market

The market in which a particular product or service is sold, considering the competition and the demand of consumers.

Rule Of Reason

A legal doctrine that determines the legality of certain business practices based on their harm or benefit to competition.

Physical Activity

Any bodily movement produced by skeletal muscles that requires energy expenditure, contributing to health and fitness.