Which of the Following Statements Is False

question 12

Multiple Choice

Which of the following statements is false?

• A) Financial transactions are not sources of value, but merely serve to adjust the timing and risk of the cash flows to best suit the needs of the firm or its investors.
• B) The NPV of trading a security in a normal market is zero.
• C) We cannot separate a firm's investment decision from the decision of how to finance the investment.
• D) In normal markets, trading securities neither creates nor destroys value.

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Definitions:

Gender Constancy

The understanding that an individual's gender identity is fixed and does not change over time or due to external appearances.

Contextual Explanation

An interpretation or clarification that considers the surrounding circumstances or factors affecting a specific situation or event.

Social Learning

The process of acquiring behaviors, skills, attitudes, or values from observing the actions or outcomes of others.

Psychoanalytic

Relating to or denoting a method of psychological therapy originated by Sigmund Freud which emphasizes unconscious mental processes.