Which of the Following Statements About E-Marketplaces That Act as Independent

question 18

Multiple Choice

Which of the following statements about e-marketplaces that act as independent trading communities is false?

• A) These trading communities allow buyers to easily compare offerings from various sellers.
• B) Independent trading communities charge a fee for their service.
• C) Independent trading communities often consist of thousands of geographically dispersed buyers and sellers.
• D) This independent type of trading community is favored by large companies.
• E) Independent trading communities often operate in an environment where demand and supply fluctuations cause volatile prices.

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Definitions:

Credit Ratings

Assessments of the creditworthiness of borrowers, ranging from governments to private enterprises, indicating their ability to repay borrowed money.

Speculative

Involving financial transactions with a high risk of loss but also the potential for significant gains, often based on future expectations.

Coupon Interest Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value.

Market Interest Rate

The prevailing rate of interest available in the market on loans, bonds, and other financial instruments.