Financial Markets Have the Basic Function of

question 5

Multiple Choice

Financial markets have the basic function of

• A) bringing together people with funds to lend and people who want to borrow funds.
• B) assuring that the swings in the business cycle are less pronounced.
• C) assuring that governments need never resort to printing money.
• D) both A and B of the above.
• E) both B and C of the above.

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Definitions:

Independent Variable

In research, this is the variable that is manipulated or changed to observe its effect on a dependent variable.

Independent Variable

In research, the variable that is manipulated or changed to observe its effect on a dependent variable.

Confounding Variable

An external factor in a research study that can cause a false association between the study variables, compromising the results' validity.

Dependent Variable

In scientific research, this is the variable being tested and measured, which is expected to change as a result of manipulations to the independent variable.