Which of the Following Is True of a Securities Exchange

question 78

Multiple Choice

Which of the following is true of a securities exchange?

• A) It serves as an intermediary by channeling the savings of individuals, businesses, and governments into loans or investments.
• B) It borrows funds directly from the financial institutions.
• C) It is an association of banks who meet to buy and sell stocks and bonds.
• D) It provides a marketplace in which firms can raise funds through the sale of new securities and purchasers can resell securities.

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Definitions:

Organization

(1) Piaget’s term for the creation of categories or systems of knowledge. (2) Mnemonic strategy of categorizing material to be remembered.

Technique

A specific way of carrying out a particular task, often implying a skillful or efficient method.

Moral Reasoning

The process of determining right and wrong in scenarios, guided by personal, cultural, or societal standards of behavior.

Obedience to Authority

The psychological tendency to comply with instructions or orders from individuals perceived as authoritative.