Which Statement Is False

question 107

Multiple Choice

Which statement is false?

• A)Under our economic system,most of the important decisions are made in the market place.
• B)In our economy the price mechanism determines the answers to our three basic questions-what,how,and for whom.
• C)Most economists would agree that the price system leads to a very efficient allocation of resources.
• D)None of these statements are false.

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Definitions:

New Securities

Financial instruments that have been recently issued, including stocks, bonds, or other financial assets available for investors to buy.

Transactions Exposure

Refers to the potential for a company's cash flows and thus its market value to change due to a change in exchange rates.

Swap Contract

A financial agreement where two parties agree to exchange the cash flows or liabilities from two different financial instruments.

Spot Price

Spot Price is the current market price at which a particular asset, such as commodities, securities, or currencies, can be bought or sold for immediate delivery.